Union City Security Firm Owners Ordered to Repay $210,000 in Stolen Wages to 81 Workers

Imagine working long hours in a demanding job, only to discover your employer has been systematically cheating you out of your rightful pay. That’s what happened to dozens of security guards in the Bay Area, according to a case that recently concluded in Alameda County Superior Court.

The owners of Alfa Private Security, an armed security company based in Union City, pled guilty to felony wage theft along with insurance fraud in September. The husband-wife co-owners were accused of failing to pay their employees properly and misrepresenting their workers’ comp insurance coverage. After a four-year investigation, a judge ordered the couple to repay over $210,000 to workers they had cheated and nearly $81,000 to the State Compensation Insurance Fund.

The investigation began in September 2021 when the California Department of Insurance started looking into potential fraud at the company. What they uncovered was a pattern of violations that hurt workers in multiple ways. Investigators from three different agencies spent four years reviewing the company’s financial records. They also interviewed former workers who reported they hadn’t been paid properly.

Prosecutors identified 81 workers who were affected. They have been able to locate 37 of those individuals so far, and a judge ordered them to pay $210,652 in restitution to those workers. That means the remaining workers are still out there, potentially unaware they’re owed back pay.

California law clearly states that workers must be paid for every hour they work, including overtime. When employees work more than eight hours in a day or 40 hours in a week, they’re entitled to overtime pay at one and a half times their regular rate. For hours over 12 in a single day, the rate jumps to double time. These are not suggestions or guidelines. They are legal requirements. As this case demonstrates, wage theft can sometimes even be prosecuted as a felony.

The California Labor Commissioner emphasized that wage theft and insurance fraud “rob workers of the pay and protections they deserve.” When one company cheats its workers out of hard-earned wages, it can undercut honest businesses that follow the rules and properly pay their employees.

Both owners of Alfa Private Security are responsible for paying full restitution to all the workers affected by the wage theft. If the victims receive their back wages and she maintains good conduct, the wife could have her charges dismissed within a year.

This case serves as a reminder that wage theft is taken seriously in California. It is not just a dispute between an employer and employee that gets worked out privately. When employers systematically cheat their workers, they can face criminal prosecution and be ordered to pay back everything they owe, plus face additional penalties.

If you believe your employer has been stealing your wages, whether through unpaid overtime, forcing off-the-clock work or any other scheme to avoid paying what you’ve earned, you have legal options. California law protects workers who speak up about wage and hour violations, and it is possible to recover what you are owed.

At McCormack Law Firm, we understand how devastating wage theft can be for workers and their families. If you suspect your employer has failed to pay you properly for hours worked or overtime earned, our San Francisco employment lawyers can help. Contact us today for a free initial consultation to learn more.

Disclaimer: This article is for information purposes only. McCormack Law Firm is not involved in this case.