The City of San Francisco is looking into the labor practices of one of the firms hired to provide services for the America’s Cup. According to a complaint filed by local unions, the contractor may not be using local labor or complying with mandated prevailing wage laws.

The case involves a Richmond-based firm which, according to the unions, may be using labor from Texas and or Virginia. Those workers are non-union. And while the City confirmed that the firm is paying them all at least minimum wage, it is unclear at this point whether they are paying workers the required prevailing wage.

The firm in question had previous run afoul of labor practices when it was hired to support the Oracle Open World concert at Treasure Island. There, it was discovered the firm was paying workers less than the minimum wage.

In this case, the questions are about local hire and prevailing wage – each were specified in a labor agreement that was finalized last winter. It requires that workers be paid the state’s industry-specific prevailing wage and at least 20 percent of the Americas Cup workforce be hired from the local job market.

The City is launching inquiries into both claims.

Read the full story at the San Francisco Examiner.