The California Department of Industrial Relations (DIR) has recently updated and released felony charges against Lawrence Lee, 68, co-owner of garment manufacturer business Parbe Inc., and Soon Ae Park, a garment contractor of HTA Fashion who had a history of wage theft, along with details of the two-year investigation.
BOFE issued Notices of Joint Liability to Park and Parbe Inc. for over $81,000 for their failure to provide workers’ compensation coverage for their employees. Park was cited more than $70,000 for violation of the paid sick leave requirements, violating record-keeping requirements, and violating the garment registration provision. Parbe Inc. CEO Lawrence Lee was cited $4,000 for failure to provide workers with written notice of their paid sick leave, $4,000 for violation of record-keeping provisions, and $200 for violation of the garment registration provision.
“In addition to the felony charges, the companies were fined a total of $161,738,” said DIR Public Communications Officer Frank Polizzi. “The investigation was initiated by the Department of Labor Bureau of Field Enforcement in January 2021, and the case was assigned to DOL’s Criminal Investigation Unit later that year.”
The involvement of the criminal investigation team suggests that authorities took the allegations of wage exploitation seriously, warranting further investigation.
In fact, during the course of the investigation, it was discovered that the company had been paying employees less than the minimum wage. This is why the investigation was treated as a felony under California Penal Code Section 487m (Grand Theft of Wages) of the Criminal Code. For example, according to the DIR, Park paid an average of $350 in cash to employees who worked more than 50 hours per week. That’s effectively less than $7 hourly wage, which is less than half of the state’s current $15.50 minimum wage.
“This is worker exploitation, and we will continue to work with the Los Angeles County District Attorney’s Office to find and prosecute these ‘bad-actor employers,'” said Lilia Garcia-Brower, California State Labor Commissioner.
Additionally, they are facing perjury charges due to operating without registering as a garment business.
“Parbe Inc., identified as a wage guarantor for Park, contracted with Park even after the Labor Commissioner’s Office notified it of alleged wage violations by Park,” Polizzi added. “He is also suspected of perjury for not accurately completing required information when registering as a garment business.”
A lawyer for the business owners informed the Korea Daily on October 19 that “both pleaded not guilty at their arraignment,” and “they are currently out on bail.”
The criminal prosecution illustrates the authorities’ determination to eradicate wage exploitation in LA.
“Under the Garment Worker Protection Act, an investigation can result in a three-year payroll inspection as well as fines,” said Jinni Kang, a lawyer in LA. “Employees are also entitled to damages, including unpaid wage interests, if they were paid less than the minimum wage.”
Since 2022, California has enforced a law (AB1003) that categorizes wage theft by employers as grand theft, holding them criminally liable for failing to pay legal wages. The Los Angeles County District Attorney’s Office established the Labor Justice Unit in September to combat wage theft.
BY YEOL JANG, JUNHAN PARK [jang.yeol@koreadaily.com]
