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AUSD May Be On The Hook for Worker’s Wages

The East Bay Express is reporting that the Alameda Unified School District may be on the hook for wages owed to employees of an area contractor that allegedly illegally underpaid workers.

Apparently, AUSD hired NBC General Contractors in the past to do work on various schools around town. We haven’t confirmed with AUSD, but it’s a pretty safe bet that the work in question was funded by “Measure C” funds – take a look at your property tax bill.

It’s pretty complicated, but it seems that NBC General Contractors may have not paid workers the mandated “prevailing wage” for the work on Alameda schools. Monica Ung, NBC’s principal, is up on charges of defrauding the state insurance fund, local charges and the workers. The estimated value of the fraud ranges from $5 million to $20 million.

AUSD’s consultant that dealt with NBC on the work may not have done proper due diligence on NBC and their payroll practices. The Express is reporting that, under State law, AUSD – meaning local Alameda taxpayers – may be held liable for restitution for the workers. Here’s an excerpt (below), but we encourage you to read the entire article.

As for Alameda Unified, Kurt Viera, an independent consultant who managed NBC on its contracts for the district and conducted a review of its payroll practices, acknowledged that he only looked at the records supplied by Ung’s company. The district hired NBC for about $4.5 million of contracting work at Edison, Otis, and Donald Lum elementary schools.

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