Castro Valley winery forced to shut down after state interferes

CASTRO VALLEY, Calif. (KGO) -- During it's nearly 30 years the Westover Winery, in Castro Valley, has gained notoriety for its port wines. But now, owner Bill Smyth is letting his grapes die on the vine.

Smyth says, "The state has siphoned so much money away from us, there's not even enough money for us to continue."

The Labor Commissioner's Office says the volunteers at Westover, like Ken Tatum, are illegally unpaid laborers. It says Westover Winery should have paid them and paid worker taxes to the state.

Tatum says, "It's not a one-sided thing where he's getting all the benefits of me working. I'm getting a benefit because I'm learning."

Tatum and other volunteers received free courses in wine making.

The Westover Winery says there were no warnings, no cease and desist order before they were slapped with $130,000 in fines. And that's sending a chill through the wine industry.

Smyth says, "I would say over 95 percent of all wineries in California had volunteers at one point or another until I went public with this."

Smyth says many wineries are quickly getting rid of volunteers or paying them. The California Department of Industrial Relations, which levied the fine, says: "The Labor Commissioner's Office is committed to protecting businesses that pay their employees and follow the rules. It isn't fair to them when a competition doesn't follow the rules. That is the reason for the citations issued in this case."

Regardless, Smyth wants to know why the law is being exercised now. Even though he's closing his winery, he has gathered more than 600 signatures and he's preparing to change the law.