L.A. Developers Cited $2.3 Million for Wage Theft at Four Construction Sites
California Wage Theft Watch – October 2, 2025
Hello, labor rights followers! Scanning the latest from the California Department of Industrial Relations (DIR) reveals no new enforcement citations or announcements from the Labor Commissioner’s Office today.
Spotlight: Shell Companies in Construction – Evading Accountability Through Layers
The construction industry, with its complex subcontracting and entity structures, is vulnerable to schemes that use multiple companies to dodge wage laws. This tactic can obscure responsibility and deprive workers of fair pay. For today’s deep dive, we highlight a recent action against Los Angeles developers, illustrating how enforcement pierces corporate veils to deliver justice.
August 21, 2025: L.A. Developers Cited $2.3 Million for Wage Theft at Four Construction Sites
- Employers: Todd Wexman (individual), Bridget Wexman (individual), Jeffrey Farrington (individual), San Fernando Studios LP and LLC, Monterey 60 LP and LLC, 4Mica LP and LLC, Barranca Studios LP and LLC
- Locations: 751 South Valencia Street, Los Angeles; 2020 North Barranca Street, Los Angeles; 5933–5939 Monterey Road & 470 South Avenue 60, Los Angeles; 215 North San Fernando Road, Los Angeles
- Workers Affected: 124 construction workers
- Violations: Denying overtime for hours over eight daily or 40 weekly; paying below L.A. minimum wage; failing to provide sick leave and pandemic supplemental sick leave; issuing inaccurate wage statements; employing multiple entities to avoid overtime and minimum wage obligations
- Amounts Assessed: $2,345,384 total, including over $2.1 million in unpaid wages and damages, plus $165,000+ in interest; average $18,900 per worker
- Case Overview: Violations spanned May 2021 to August 2023. Referred to the Labor Commissioner’s Office in March 2023 by the Carpenters/Contractors Cooperation Committee, a labor-management group. The Bureau of Field Enforcement (BOFE) investigated, targeting evasion via shell entities. Employers have 15 business days to appeal; otherwise, citations finalize.
Labor Commissioner Lilia García-Brower said: “Employers can’t hide behind corporate shell games to cheat workers out of their hard-earned wages and entitled protections. This case is a clear example of how business entities were used to mislead workers and deny them the basic rights and legal protections they deserve under the law.”
Actions like this align with broader efforts to tackle misclassification and evasion in high-risk sectors.
Construction Wage Protections: Spotting and Stopping Evasion
- Worker Alerts: Review pay stubs for accurate hours and rates; if entities change frequently, question status. Entitled to overtime after 8 hours/day, local minimums, and sick leave (up to 40 hours/year standard, plus COVID extras if applicable).
- Reporting Steps: Suspect issues? File anonymously at dir.ca.gov/dlse/HowToReportViolationtoBOFE.htm or contact groups like the Carpenters/Contractors Cooperation Committee for support.
- Employer Advice: Maintain clear entity structures; ensure all comply with Labor Code §§510 (overtime), 1194 (minimum wage), 246 (sick leave). DIR resources at dir.ca.gov/dlse/Construction.html help navigate.
Back tomorrow for updates. Info from official DIR channels.