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Donald Sterling: Billionaire sued by building managers over low pay
Jeffrey Castillo earned $500 per month plus free rent as a manager for Beverly Hills Properties, the company that managed Donald Sterling's buildings. He turned to government assistance to make ends meet.
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Donald Sterling: Billionaire sued by building managers over low pay
Los Angeles Clippers basketball team owner Donald Sterling made a fortune renting thousands of apartments, but some of his former managers are suing the billionaire for allegedly underpaying them.
Two managers are pursuing the lawsuit as a class action on behalf of more than 150 current and former managers, said Santa Monica attorney Michael Morrison.
The lead plaintiff is John Jung Kim, a Korean immigrant who managed one of Sterling's buildings. Another plaintiff is a woman who immigrated from Russia.
RELATED: NBA bans Clippers owner Donald Sterling for life, fines him $2.5M, looks to force sale (updated)
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Morrison said building managers were paid for 13 hours of work, but were required to spend 40 weekday hours a week on the premises, in a manager's office or their apartments.
"Hour 14 through 40, or whatever they work in a week, have to be paid in California at least at the minimum wage, and that's not happening here," Morrison said.
Managers were paid a few hundred dollars a month and got to live in the building for free. Giving managers free rent did not relieve the building owner of the requirement to pay for their hours on the job, Morrison said, calling the underpayment "wage theft."
Attorneys or other representatives of Beverly Hills Properties did not respond Friday and Monday to requests for comment. Sterling's attorneys responded in court documents saying that the building managers had no grounds to sue because they promised to work fewer than eight hours a day.
Jeffrey Castillo, 30, is an Army veteran who managed one of Sterling's buildings in Koreatown. Castillo said he made only $500 per month, but was required to be present at the building weekdays from 8 a.m. to 4:30 p.m. His apartment would normally rent out for about $1,000, but he got to live there for free.
He's considering signing on as a plaintiff to the lawsuit.
"The cruel part is not the amount of dollars that you're receiving; the thing that puts the burden on you is that they don't want you to work another job," Castillo said.
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He found himself relying on welfare payments and food stamps to care for his family. After four years, he quit.
"The taxpayer picks up the burden because then I had to collect welfare and the food stamps and stuff to get by," Castillo said.
Correction: An earlier version of a teaser for this story misstated which team Donald Sterling owns. KPCC regrets the error.
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But the game has changed: Congress voted to eliminate funding for public media across the country. Here at LAist that means a loss of $1.7 million in our budget every year. We want to assure you that despite growing threats to free press and free speech, LAist will remain a voice you know and trust. Speaking frankly, the amount of reader support we receive will help determine how strong of a newsroom we are going forward to cover the important news in our community.
We’re asking you to stand up for independent reporting that will not be silenced. With more individuals like you supporting this public service, we can continue to provide essential coverage for Southern Californians that you can’t find anywhere else. Become a monthly member today to help sustain this mission.
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