Although California leaders wish to tout the state because the world’s fifth largest economic systemit could possibly seem that California has two economies: One the place some employees nonetheless aren’t paid what they’re owed, and one other the place some California companies are raking in large bucks.
In a single main case, the state’s Labor Commissioner’s Workplace is having a tough time monitoring down the janitorial employees who’re owed again pay from a $1 million wage theft settlement with The Cheesecake Manufacturing unit, writes CalMatters Capitol reporter Jeanne Kuang.
Solely 42 of the previous janitors acquired their settlement cash, leaving greater than 500 nonetheless to be discovered and $700,000 of unclaimed cash in state accounts. Officers have despatched letters to employees’ final recognized addresses, posted on social media, completed a TV interview and created a hotline.
A senior deputy labor commissioner stated that low-wage employees, who’re the main focus of most labor violations investigations, are sometimes immigrants, and should have moved or left the nation. There isn’t a deadline for employees to assert the cash, however the prolonged authorized proceedings don’t assist: The janitors within the The Cheesecake Manufacturing unit lawsuit cleaned the eating places someday between 2014 and 2017.
Alma Idelfonso, who acquired $20,000 earlier this 12 months, says it’s not sufficient in comparison with what she’s owed, however she nonetheless urges fellow employees to report labor violations. She retains the hotline quantity useful to inform others in regards to the settlement.
- Idelfonso: “That money did help me. It is worth it to fight … so they understand that they can’t abuse people anymore.”
Study extra in regards to the delays in wage theft funds in Jeanne’s story.
On the opposite finish of the spectrum, the state acquired an inflow of sudden company tax income this summer time — practically $2 billion larger than estimates since April.
As CalMatters economic system reporter Levi Sumagaysay explains, an particularly great amount got here in July, together with $800 million greater than anticipated in a single day. Whereas tax data are confidential, state officers and accounting specialists say they consider the additional cash got here from a couple of Silicon Valley firms, notably the booming synthetic intelligence chipmaker Nvidia, which reported $16.6 billion in income for the second quarter.
The windfall illustrates the tense relationship between the state and Massive Tech. Although the state is commonly accused of overregulating tech firms (Newsom signed six payments on AI this 12 months, although he vetoed one fiercely opposed by tech firms), California additionally depends on their tax income.
Learn extra in regards to the sudden tax cash in Levi’s story.