San Jose flooring company owner sentenced for shorting workers $1 million in overtime wages

SAN JOSE, Calif. — After failing to pay his employees $1 million in overtime wages, the owner of a San Jose flooring company was sentenced to four months in jail and ordered to pay over $580,000 in restitution.

According to a statement released by the Santa Clara County District Attorney’s Office on Thursday, an investigation revealed that the flooring company’s owner, 35-year-old Martin Helda, had underpaid his employees in order to avoid paying $140,000 in insurance premiums.

“Whatever money you think you’re saving in the short term will cost you a lot more in the long run.” “Fraud does not pay,” said District Attorney Jeff Rosen in a statement.

An insurance audit discovered that the company’s payroll did not match the number of employees at All Bay Area Floors, Helda’s company. Overtime wages were withheld from at least 18 employees, including one who owed $60,000, according to the investigation.

According to the District Attorney’s Office, the total amount owed to employees could be up to $1.7 million, implying that the investigation did not uncover all of the theft.

Helda pled guilty to three counts of fraud. In addition, he was sentenced to 200 hours of community service.