Details of the Case

• A worker gained employment by providing a falsified Social Security number and resident alien card.
• Due to changes in work needs, he was laid off and rehired several time. On each occasion, he provided the same falsified forms.
• The worker was injured and filed a workers’ compensation claim.
• The worker was laid off again without reinstatement.
• The worker sued the employer for retaliation and failure to provide a disability accommodation.
• Before trial, the employer learned of the worker’s illegal immigrant status.

The Court’s Ruling

Though the California Court of Appeals ruled in favor of the company, the state Supreme Court overturned the decision. It concluded that the federal Immigration Reform and Control Act did not preempt California’s anti-discrimination act, which states in part that “All protections, rights and remedies available under state law… are available to all individuals regardless of immigration status who have applied for employment, or who are or who have been employed, in this state.”

For questions about this court determination or any other employment regulation, contact us today.

Key Allegations Explained Clearly

The lawsuit claims the company built a payroll scheme to avoid paying overtime. Many workers logged a full day shift and then returned for an evening shift. Yet, they did not receive time-and-a-half pay. Instead, their weekly hours were split across two paychecks. One came from Michael Bianco. The second came from its sister corporation, Front Line Defense, Inc.. Both businesses reportedly shared the same building, equipment, team, and supervisors.

Statements From Worker Advocates

Attorney Greater Boston Legal Services leads the worker representation with help from South Coastal Counties Legal Services. The legal team also includes managing partner Philip Gordon from Gordon Law Group, providing services in a pro bono role.
Senior attorney Audrey Richardson stated the company created a fake separation between the businesses. She explained that both corporations operated as one employer in practice. Attorney Ingrid Nava added that many workers earned minimum wage or close to it. She also stressed that workplace fairness protects all workers, regardless of status.

Time Deduction and Rounding Practices Under Fire

The filing also challenges the company tardiness policy. Workers lost 15 to 30 minutes of wages for arriving one minute late. This happened even when long clock-in lines caused the delay. Workers also waited to punch out, but they weren’t paid for that time either.
Advocacy director Phillip Kassel, speaking for South Coastal Counties Legal Services, said the company kept large sums that should have paid low-wage families instead.

Community and Legal Collaboration

The case was filed in partnership with the Organizacion Maya K’iche, a local worker support organization led by director Anibal Lucas. He said workers only wanted fair treatment and stable income.

The Immigration Raid That Triggered Worker Claims

In March 2007, a federal immigration raid hit the Michael Bianco factory. It resulted in arrests, family hardship, and a community support crisis. But wage violations reportedly affected all workers, not only those detained.

Why This Case Matters for Wage Law Enforcement

The lawsuit highlights how misdirection can block worker rights. The case also pushes companies to follow real payroll rules, real overtime calculations, and fair time recording. Most importantly, it pressures employers to treat compensable time as paid time.

✅ Rights Workers Can Reclaim If the Case Succeeds

• Full hourly wages for missed compensable time
• Time-and-a-half overtime premiums for excess hours
• Repayment for illegal minute-late deductions
• Compensation for unpaid clock-out waiting periods
• Possible multiple damage awards based on unpaid wage value

The arrests were made in connection with the “second phase” of the Secure Border Initiative. Phase one primarily focused on increasing security along the borders and the removal and return of illegal immigrants now in the U.S. Phase two, among other things, aims to bolster enforcement of workplace compliance with existing immigration laws by using all the means at its disposal. Where previous enforcement in this area was sporadic and typically involved civil fines and penalties, the IFCO experience illustrates an increased willingness to use criminal sanctions.

An ICE sampling of 5,800 IFCO employees found that approximately 53% of them held “faulty” social security numbers, including those of dead persons, children and people who were not employed by IFCO. The Social Security Administration requested that the company address the situation and received no response. The subsequent raids targeted 40 IFCO plants in 26 states, including Massachusetts.

The seven current and former managers netted in the raids were charged by federal prosecutors with “conspiracy to transport, harbor and encourage illegal workers to reside in the United States for commercial advantage and private financial gain.” Managers allegedly induced illegal immigrants to work at the various plants by asking them to falsify W-2s and, in some cases, stating that no documentation was necessary for employment.