Rep. Mike Honda talked tough Thursday against a Fremont company that the Labor Department has fined for unfair labor practices – the CEO of which is a donor to and endorser of his Democratic challenger, Ro Khanna.
Honda, D-San Jose, issued a statement Thursday saying these practices “constitute the most egregious type of wage theft and employee abuse. They undermine fair labor competition among businesses, and if left unaddressed they would erode the idea that this is an economy of opportunity.”
Honda said the Labor Department “operated within their guidelines to deliver justice” – a $3,500 fine plus payment of more than $40,000 in back wages – but wage laws must be updated to deter such things “especially for a publicly traded, multi-national corporation that generated $197.7 million in revenue in its last quarter.”
“As soon as Congress comes back into session, I will introduce a commonsense change in our labor laws which will ensure that there a strong, effective minimum penalty in place for offenders, and increase the maximum penalty enough to deter unscrupulous employers from contemplating wage abuses against workers in the United States,” Honda said. “We will send a message that wage abuses are human rights abuses and competitive abuses that will not be tolerated by our economy and society.”
EFI CEO Guy Gecht contributed $2,600 to Khanna’s campaign in September 2013, and is listed among Khanna’s tech-executive endorsements on the campaign’s website. (UPDATE @ 5:19 P.M.: Khanna’s campaign has just removed Gecht’s name from the endorsement list.)
“The inexcusable exploitation by Electronics for Imaging goes against everything that Silicon Valley stands for,” Khanna spokesman Tyler Law said Thursday. “Their behavior is not representative of the hardworking and honest people who live and work in the 17th District, and should serve as a reminder of why we need strong labor laws in this country. Ro is encouraged that they have been fined by the Labor Department and is committed to forcefully confronting any company that engages in wage theft.”
UPDATE @ 5:45 P.M. FRIDAY: The Alameda Labor Council, which staunchly supports Honda, has called upon Khanna to refund Gecht’s money; Khanna has declined.