Tyler Maxwell believes in Fresno’s wage theft unit — even with City Hall facing budget challenges.

“I will fight for it as hard as I would anything else that I’ve championed over the last five years I’ve been in office,” said Maxwell, a city councilmember.

At a news conference Monday, Maxwell and City Attorney Andrew Janz announced the first case filed by the unit. It’s against a hotel owner and construction contractor, who allegedly misspaid employees.

The program, operated through the City Attorney’s Office, received a $720,000 state grant last year.

Both the state and Mayor Jerry Dyer are expected to reveal their respective budget updates this week. Dyer said last week that the city was at least $20 million in the red, before he found a way to balance the budget.

“We’re going to continue to pursue grants where possible to alleviate any potential burden on the general fund which we have not had to dip into thus far,” Maxwell said.

Maxwell said it could be even more costly to eliminate the program because of budget cuts, and then resume it later during better financial times.

“I think in times of economic uncertainty that these programs are needed more than ever,” Maxwell said.

A recent state law allowed city attorneys to enforce certain labor laws like wage theft. Maxwell pushed for passage in Fresno and the state grant to fund startup costs.

Maxwell expected a slow build.

“We expected it to take a while, but we expect things to move forward a lot more smoothly,” Maxwell said.

Janz said there are 10 to 12 new cases pending.

City Alleges Hotel and Contractor Stole Wages

In a court filing, the city accuses Pinnacle Hospitality and Development, Inc., its owner Lakwinder Singh Brar, and contractor Juan Moreno of 11 counts of labor code violations.

Pinnacle operates the Holiday Inn Express & Suites in northwest Fresno.

Janz said Pinnacle hired a contractor, Moreno, for renovation work between April 2023 and Sept. 2024. Some workers were promised a per job rate, and others $50 a day, which Janz said did not even meet minimum wage standards.

The defendants failed to pay overtime and provide breaks. Moreno also allegedly charged workers for food and gas.

“Common among all complaints is a general disregard for payments. Each stated that payment of wages was non-existent, sporadic, or a combination of the two,” Janz said.

The total owed, Janz said, is $58,000. There could be “hundreds of thousands of dollars” in punitive damages, he said.

“When they put in an honest day’s work, they expect an honest day’s pay,” Maxwell said.

The civil lawsuit, filed in Fresno County Superior Court, also alleged “Moreno was instructed to recruit vulnerable, underprivileged workers to perform construction work at the Hotel.”

The case came to the attention of the wage theft unit through a police report filed by a victim.

“Our goal at the end of the day really is just to make the victims whole. That is our primary goal. We’re not trying to put anyone in jail, but that is something that is potentially out there,” Janz said.

While the victims worked for Moreno, Janz said the city could also tie Pinnacle to the lawsuit.

Brar is also owner of Brar Construction, TSB Ag Inc., and Madera Ford, public documents and GV Wire research showed.

Messages to Brar were not returned.

Read the Complaint