A nonprofit group said on Thursday that it had settled a fraud complaint it filed against New Flyer of America, a bus maker that is a big government contractor in California, the New York Times reported. The nonprofit, Jobs to Move America, accused New Flyer in 2018 of failing to fulfill a commitment the company made to create several dozen jobs above a certain pay rate when it won a contract for hundreds of buses with the Los Angeles County Metropolitan Transportation Authority. According to the legal complaint, which was filed on behalf of the transportation agency and the State of California, the company claimed that it would create more than 50 full-time positions at a facility in Ontario, Calif., more than 90 percent of which would pay at least $18.35 per hour. But documentation uncovered by Jobs to Move America indicated that most workers were making $17 per hour or less early on in the contract. The complaint also accused New Flyer of submitting false information to L.A. Metro about worker benefits. New Flyer is not admitting wrongdoing and will pay $7 million to settle the case, which is likely to be divided evenly between L.A. Metro and Jobs to Move America after expenses like attorneys’ fees are deducted. Madeline Janis, the nonprofit’s executive director, said that it planned to distribute some of the money to workers who had been employed by New Flyer in California. The company also agreed to adopt measures to help ensure better compliance in subsequent contracts with L.A. Metro, including designating a company official trained in tracking wages and benefits to oversee compliance.
