A Petaluma construction company agreed to a settlement with the California Labor Commissioner after a subcontractor it hired failed to pay the prevailing wages to its employees.

When Midstate discovered the problem, it voluntarily paid more than $100,000 to Joseph Brothers employees, said Roger Nelson, Midstate Construction president.

Midstate Construction and two other general contractors were held responsible for wage violations made by Joseph Brothers, a San Leandro drywall and carpentry subcontractor that failed to pay prevailing wages, according to the state Labor Commissioner.

Under state law, general contractors are liable for wage violations by their subcontractors.

Nelson said Joseph Brothers had falsified records and was not paying its men. Early in the project, it became clear there were reporting discrepancies, so Midstate began tracking the hours that Joseph Brothers employees worked, he said.

"We were provided with the certified payroll, but we've never been provided with canceled checks showing who was paid on that project," Nelson said.

Midstate Construction agreed to pay a settlement of $31,437 to the Labor Commissioner to cover wages for employees who had not yet been found, Nelson said.

State Labor Commissioner Julie Su announced settlements Thursday totaling $310,686 with Midstate, Bobo Construction of Elk Grove and Jeff Luchetti Construction of Larkspur for wage violations involving 28 workers at Joseph Brothers.