NeilMed workers file labor lawsuit after layoffs

Workers who lost their jobs at NeilMed Pharmaceuticals following an immigration probe in February have filed a class action suit against the Santa Rosa company, alleging it violated California’s labor laws.

Workers were denied overtime, vacation pay, promised bonuses, meal and rest breaks, reimbursement of expenses and other employment rights, according to the complaint filed in Sonoma County Superior Court.

They also were required to work “off the clock” and given false wage statements, the suit alleges.

NeilMed owner Dr. Ketan Mehta did not return a call Thursday seeking comment. A spokesman for the U.S. Department of Labor said Thursday that an investigation of NeilMed earlier this year found no violation of federal wage and hour laws.

About 175 Latino workers resigned voluntarily in February when the company told them they didn’t have proper documents to work in the United States, a NeilMed spokeswoman said at the time.

But an attorney representing the workers said NeilMed forced them to resign or have their cases turned over to federal authorities.

The action followed a February probe of NeilMed by U.S. Immigration and Customs Enforcement. NeilMed’s own investigation found the workers were using fraudulent identification, the company said.

NeilMed, which makes nasal rinse products for sinus sufferers, has about 250 employees. Its sales exploded in 2007 when one of its products was mentioned on Oprah Winfrey’s TV show.

The class action suit was filed last month by Miriam Aquino Ruelas and Aidee Gamboa of Santa Rosa, who were hourly workers at NeilMed until February.

The lawsuit alleges that at least 250 hourly workers were denied their rightful wages and other benefits between 2005 and this year.

Employees were routinely asked to work before they clocked in and after they clocked out, resulting in underpayment of regular and overtime hours, the lawsuit said.

The company also altered records to show fewer hours than employees actually worked, it said. Workers who were required to buy uniforms and supplies weren’t reimbursed, according to the lawsuit.

Employees didn’t get accrued vacation pay, promised bonuses, required meal and rest breaks or accurate wage statements, it said.

The lawsuit seeks an audit of NeilMed’s payroll records and restitution of workers’ lost wages. Plaintiffs’ attorney Mark Talamantes couldn’t be reached for comment Thursday.

A U.S. Department of Labor investigation of NeilMed in March found no violations of federal wage or hour laws, said Michael Shimizu, a department spokesman.

Immigration and Customs Enforcement officials didn’t return a call Thursday seeking a comment on the outcome of their investigation.