BYD Motors Inc.

CA: BYD No Longer Charged with Violating Minimum Wage Laws

The California Department of Labor Standards and Enforcement just now confirmed that the sub-minimum wage charges made against BYD in October and widely publicized has been withdrawn. 

"We welcome the Labor Commissioner's office dropping the false charges that BYD paid below minimum wages under California state law, as just confirmed on the recorded record," said Lanny J. Davis, attorney for BYD. "We wish this had come sooner - and we ask all media who published this false and damaging charge against BYD to publish just as conspicuously that the Labor Commissioner's office has withdrawn these false charges."

Complete statement by Davis: 

“It is my understanding that BYD welcomes the decision by the California Labor Commissioner to dismiss as unmerited citations alleging that BYD paid below California's minimum wage to five professionals from China who temporarily worked for BYD in the latter half of 2014.

BYD produced substantial documents to the Commissioner's office proving that BYD paid these professionals the equivalent of above the state minimum wage of $8.00 hour.  BYD documents prove that these professionals were in fact paid $12-$16 / hour.  Therefore, the Commissioner's office has today agreed to dismiss the minimum wage assessment based on the alleged under-minimum-wage payments.  All five of these professionals were no longer working for BYD in California by the end of 2013.

However, the Labor Commissioner's position is that BYD should have paid these five employees in U.S. dollars, not in their home currency (RMBs).  While BYD disagrees with this position as a matter of law, in the spirit of resolving this matter, BYD has agreed to pay $1,900 for this alleged error.

This means that the hearing on the minimum wage issue on calendar for tomorrow, Tuesday, January 28, will no longer be necessary.  BYD appreciates the cooperation and communication that led to this resolution.

However the hearing will continue regarding two other alleged technical violations that BYD denies -- the alleged omission of two out of nine categories of information on check stubs of all employees; and the alleged denial of rest breaks for 8 employees who were permitted to choose to take one twenty-minute rest break, rather than requiring a split of this break into two ten-minute breaks against the employees' preference.

I am proud that this Warren Buffett backed company has already created 50 American jobs with 100 more planned next year.”