FRESNO, Calif. (KMJ/KFSN) — The City of Fresno made history as it seeks to prosecute those who commit wage theft.
The 19-page complaint was filed last week and identified as many as nine victims who are at the center of the city’s first wage theft prosecution. It impacts those described as the city’s most vulnerable workers.
The year-long investigation culminated in a complaint alleging nearly a dozen violations of the California Labor Code.
The City of Fresno took the first legal action of its kind in the state, with the focus on Pinnacle Hospitality and Development.
“Following numerous allegations of severe wage theft committed against our local Fresno workforce,” said City Councilmember Tyler Maxwell.
Victims are said to have performed various work projects including tile and sheet rock installation, demolition, painting and cleaning.
“Obviously, blue collar workers,” said Andrew Janz, Fresno City Attorney.
“I think a lot of folks think that they could go after these individuals, thinking they can take advantage and exploit them,” said Councilmember Maxwell.
Last week, the City of Fresno filed an 11-count complaint in Fresno Superior Court against Pinnacle, its CEO, and contractor Juan Moreno — who was hired by Pinnacle.
“In 2023, Pinnacle, the named defendant, brought a contractor, Juan Moreno, who promised to do the same work as their previous contractor at a faster and cheaper rate,” said Attorney Janz.
Between August of last year and this past January, the city attorney’s office received a total of nine complaints related to the alleged wage theft construction work conducted at the Holiday Inn near Highway 99 and Herndon Avenue.
“The tile installation and carpet installation workers were promised piece-rate pay depending on the number of rooms, floors and tiles they carpeted,” said Attorney Janz. “The remaining workers were promised varying rates of pay, some of which did not meet minimum wage standards.”
The complaint cited workers were paid $50 a day for an 8 to 12-hour shift. The employees also worked Monday through Saturday shifts.
“That individual went out and found some vulnerable folks in our community and offered them cash in exchange for work – didn’t pay them for what they were owed,” said Attorney Janz.
The lawsuit estimated penalties owed by the defendants at about $58,000.
“To some of you out there, that may not seem like a lot of money, but for blue-collar workers, who are just trying to make ends meet with their families, this is a significant amount of money,” said Attorney Janz.
The evidence in this case is said to be supported by text messages, videos, images, a police report and a missing paper trail.
“A lack of pay stubs in addition to statements provided to our investigators by the victims, which all corroborate themselves,” said Attorney Janz.
The city is able to prosecute this case through a $720,000 grant from the state.
“That was one of the largest allocations in the entire State of California because we demonstrated early on that we were very serious about this program,” said Councilmember Maxwell.
Our news partner ABC30 Action News did speak with a representative of Pinnacle Hospitality and Development. It confirmed it did receive the complaint, but it did not understand why the city was involved.
The Fresno City Attorney’s office is investigating as many as 12 other cases involving alleged instances of wage theft.
