Concerns Raised Over Worker Pay at Long Beach Convention Center
A labor union representing hospitality employees has levied serious allegations against 1Fifty1 Inc., an event staffing company working with the Long Beach Convention Center. The union claims this contractor engaged in underpayment of workers and may have evaded payroll tax obligations.
Allegations of Cash Payments and Wage Theft
On Thursday, Unite Here Local 11 submitted a formal complaint to the California Labor Commissioner’s office, indicating that 1Fifty1 had been paying its convention workers in cash, an act that raises concerns over compliance with legal payment protocols.
According to the complaint, 1Fifty1, which has contracted with ASM Global—the management organization for the city-owned convention center—has been responsible for providing labor to perform various cleaning and maintenance tasks since at least 2023. These cash payments, made without a proper itemized statement, seem to violate labor laws that stipulate workers should receive documentation detailing earned wages, hours worked, and tax withholdings.
Minimum Wage Violations
The union has further accused 1Fifty1 of wage theft by failing to pay some employees the minimum wage mandated by Long Beach for concession workers, currently set at $17.97 per hour. Additionally, some employees, who logged extensive hours daily, reportedly did not receive the appropriate overtime compensation.
Immediate Response from ASM Global
In light of the allegations, ASM Global took action, terminating its contract with 1Fifty1. A representative from the company confirmed the decision following the union’s complaint and announced that the matter would be thoroughly investigated.
Long Beach City Manager Tom Modica expressed the city’s commitment to ensuring all workers are compensated according to relevant laws, stating, “We fully support paying workers according to state and federal law.”
Dispute over Allegations
In a response to the complaints, Vincent Capizzi, CEO of 1Fifty1, strongly denied the allegations claiming they were unfounded and asserting that the company maintains a commitment to high service standards for both clients and employees.
Union Concerns Regarding Contractor Practices
For several months, Unite Here Local 11 has raised concerns regarding ASM Global’s reliance on subcontractors, arguing that this practice often results in poorer wages and fewer employee protections compared to those directly hired. Kurt Petersen, co-president of the union, emphasized the need for better job security for convention center workers, urging ASM Global to offer positions to those affected by the contract cancellation with 1Fifty1.
Evidence and Investigation
The union’s complaint was supported by interviews with workers from 1Fifty1 and a video that allegedly depicted cash payments being made. The footage shows a staff member in the company’s uniform receiving cash inside an envelope, further substantiating the union’s claims.
Financially, documents obtained from ASM Global indicate that while it paid 1Fifty1 an hourly rate of $30 for staffing services in 2024, other subcontractors handling more complex roles were compensated at a lower rate, suggesting a significant markup for 1Fifty1’s services, as workers reportedly earned between $17 and $19 per hour.
Conclusion
The unfolding situation reflects broader concerns within the hospitality industry regarding labor practices and worker protections. As investigations proceed, both the union and city officials are focused on ensuring fair treatment for all workers at the Long Beach Convention Center.
