A U.S. Department of Labor investigation has secured over $450,000 in back wages and damages for 62 employees at two Half Moon Bay mushroom farms. These sites were the scene of a fatal shooting incident involving seven migrant workers in January 2023. The investigation also resulted in penalties after it was found that the employers had underpaid their workers and provided substandard housing conditions.
The recovery is part of administrative settlements reached by the department’s Wage and Hour Division with Concord Farms Inc. and California Terra Gardens. The settlements were made due to multiple violations of the Migrant and Seasonal Agricultural Worker Protection Act and the Fair Labor Standards Act. Following the shooting tragedy, an investigation into the farms’ employment practices and compliance with federal regulations was initiated.
At California Terra Gardens, investigators found 39 workers living in cramped cargo containers, garages, and dilapidated trailers. They were forced to sleep on dirty mattresses amidst insects and trash. Xianmin Guan and his wife, Liming Zhu — owners of the farm — were found to have illegally deducted money from workers’ pay for this substandard housing.
Meanwhile, at Concord Farms, owner Grace Tung housed workers in moldy rooms within a greenhouse infested with insects. It was discovered that Tung violated federal regulations by underpaying workers who received regular rates of pay for all hours worked, including overtime, and those who were not paid for off-the-clock work.
Wage and Hour Division Assistant District Director Alberto Raymond stated: “Our investigators found workers at California Terra Gardens and Concord Farms housed in sickening conditions, forced to sleep near garbage and with insects all around.” He added that the Department of Labor is committed to holding employers accountable when they fail to provide suitable housing or pay workers their legally earned wages.
In their administrative settlements, Concord Farms agreed to pay $370,107 in overtime wages and liquidated damages to 10 workers; $4,242 in late wages to 23 workers; and $29,049 in civil money penalties for its various violations. California Terra Gardens agreed to pay $84,074 to allow 39 workers to recoup the employers’ illegal housing deductions, and $42,494 in civil money penalties for its housing, wage disclosure and recordkeeping violations.
The accused shooter, indicted in January 2024, was an employee of Terra Gardens who had previously worked at Concord Farms.
California Terra Gardens is headquartered in Half Moon Bay and grows mushrooms year-round. The owners also operate locations in Pescadero and Ventura, Forest Mushroom Food Inc. in Pasadena and Half Moon Bay Properties LLC in Fremont. Concord Farms is based in Union City and grows and wholesales mushrooms and vegetables in Half Moon Bay with a distribution warehouse in Vernon.
In fiscal year 2023, investigators recovered more than $6.8 million in back wages for over 7,300 agricultural industry workers and assessed employers more than $6.6 million in civil money penalties for violations of federal regulations.
The Migrant and Seasonal Agricultural Worker Protection Act protects workers by establishing employment standards related to wages, housing, transportation, disclosures and recordkeeping.
For more information about the Wage and Hour Division or if you believe you may be owed back wages collected by the division or wish to file an online complaint, visit their website. For confidential compliance assistance, employees and employers can call the agency’s toll-free helpline at 866-4US-WAGE (487-9243). The division can communicate with callers in over 200 languages.
