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The California Department of Industrial Relations reports that the California Labor Commission has spearheaded an investigation into two bay-area construction companies for failing to obey a stop order and for failing to provide worker’s compensation insurance.

California Labor Commissioner, Angela Bradstreet is quoted as saying:

Under California law all employers must carry workers’ compensation insurance…by not doing so, employers operating illegally create an unfair competitive advantage over those who provide coverage to their injured employees. These illegal operations have a negative impact on our state’s economy and they do not provide the protection legally afforded to California Workers.

Mehdi Karimi, doing business as Struct-Tech Group, Inc., and Philip McCarthy, doing business as Glenside Construction, were cited by Bradstreet during inspections on Oct. 15 and were each issued a stop work order for not having workers’ compensation. The next day, in a follow-up visit by investigators with the Labor Commissioner’s Office, both companies were found to be illegally continuing to employ workers without the proper coverage. Both cases were immediately referred to the District Attorney’s Office for prosecution.

The San Francisco D.A. investigated the matter and issued warrants for the arrest of both men on December 26, 2008. Both owners later turned themselves in and they both face court dates this January.

Karimi and McCarthy will also face civil fines for their actions. reports that:

Karimi, based in Berkeley, was assessed a $2,000 penalty for having two employees on the job in violation of the stop work order, and McCarthy, located in San Francisco, was assessed a penalty of $5,000 for having five employees on the job in violation of the stop work order.

Folks can learn more about the California Labor Commissioner, by visiting their web site at Employees that have work-related questions or complaints can call the California Workers’ Information Hotline at 1-866-924-9757.

If you’ve been injured on the job and/or have been denied worker’s compensation coverage, please contact an attorney immediately. It is critical that you contact an attorney familiar with worker’s compensation claims. For more information, continue browsing here at or if you are a California resident visit

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