Fresno Launches First Legal Action Against Wage Theft Under New Program

The City of Fresno has initiated the first legal action under its newly formed Wage Protection Program to combat wage theft, targeting Pinnacle Hospitality and Development and contractor Juan Moreno for allegedly paying workers as little as $50 a day and violating multiple labor laws. The case involves at least nine workers who reported below minimum wage payments, unpaid overtime, lack of breaks, and illegal piece-rate pay schemes during construction work at a local Holiday Inn. This prosecution follows a year-long investigation and is the first of its kind in California, enabled by Assembly Bill 584 that allows city attorneys to pursue both civil and criminal penalties against wage theft offenders. Fresno City Attorney Andrew Janz emphasized the goal of making victims whole and seeking damages totaling approximately $58,000 in unpaid wages plus substantial punitive damages. City Councilmember Tyler Maxwell, a strong advocate for the program despite budget challenges, noted the importance of continuing these efforts especially during economic uncertainty and highlighted the intake of 10 to 12 new cases pending. The program is funded by a $720,000 state grant and aims to address delays in traditional enforcement through the state Labor Commissioner’s Office, signaling Fresno’s commitment to protecting vulnerable workers from exploitation.