Investigation of Contractor May Widen

Labor fraud charges filed this week against a Lancaster contractor in connection with a recent public works project have raised concerns among Lancaster officials about the contractor’s labor practices on five other city projects.

Lancaster City Atty. David McEwen said Friday that he plans to look into the possibility of further investigation and other legal options in the wake of the criminal case filed Wednesday against the owners of Paxin Electric Inc.

“It’s something we need to look into,” McEwen said. “I would have some concerns over whether it affects the contractor’s ability to perform. I need more facts on what our legal rights are.”

McEwen said it may be legally difficult, and perhaps inappropriate, to suspend or revoke more than $800,000 in city contracts currently held by Paxin Electric.

State labor officials have accused company President James Paxin, 38, and his wife, Brenda, 40, of defrauding employees out of about $170,000 on projects at Lancaster City Hall and a Santa Clarita park in 1988 and 1989.

Lancaster City Councilmen Arnie Rodio and George Root said in interviews Friday that the criminal charges and previous fines levied against Paxin by state labor authorities for the same type of offense raise the possibility that similar wage violations may be occurring on current projects. Rodio said the city should examine the feasibility of halting Paxin’s work on those contracts.

“I don’t believe we should judge the guy guilty,” Rodio said. But, he added, “If there’s something the city can do, we’ll do it . . . He’s entitled to a fair profit, but he’s not entitled to make it on the backs of his workers.”

The Paxins and their attorney have declined to comment.

Because the city has limited powers of investigation, city officials said, one possibility would be to ask state labor investigators to determine whether Paxin is paying state-mandated prevailing wages and if his records are accurate. The state requires contractors carrying out public works projects to pay certain wages to workers.

Roger Miller, regional manager of the state Division of Labor Standards Enforcement, said his office often responds to such requests from public agencies. And he said there may be further review of other Paxin projects anyway as part of the criminal case.

The Paxins were charged with conspiracy and misappropriating employee wages on subcontracting work at Lancaster City Hall and the Santa Clarita Park by paying workers less than the required wage. James Paxin was also charged with filing falsified pay sheets on which employees were allegedly forced to document that they received higher wages than he actually paid them.

Paxin’s company was previously fined more than $50,000 for similar violations of state law, Miller said.

Paxin Electric is working on about $650,000 in electrical subcontracts for the city, plus a large electrical subcontract on the $8-million Lancaster Performing Arts Center currently being built by the city.

City officials said they do not know how much Paxin’s performing arts center contract is worth because the general contractor is not required to inform them of the amount. There was no comment from the project’s general contractor, Cates Construction Inc. of Lancaster. Cates was also the general contractor on the City Hall project, for which Paxin was charged by the Los Angeles County district attorney’s office this week after a nine-month investigation by the state labor standards division.

Paxin also was recently awarded a $127,000 contract for wiring a Lancaster baseball field and recently completed an $82,000 underground wiring project, both as a general contractor, officials said.

By contrast, Councilman George Theophanis, who described himself as a longtime friend of Paxin’s, said Friday that he sees no need for the city to scrutinize Paxin’s contracts until the criminal case is resolved.

“That ought to be entirely up to the state,” Theophanis said. “I have no reason to believe he’s guilty.”

Councilman Henry Hearns said that unless a worker comes forward with a specific complaint, there is little the city can do other than make sure that paperwork submitted to it by the company is in good order. Mayor William Pursley was on vacation.