Restaurant Must Eat $1.6M Bill for Labor Violations

The Labor Commissioner has made an example to deter industry-wide wage violations, settling with San Francisco-based Z & Y Restaurant for $1.6 million on alleged underpayment of 22 workers.

The Commissioner found the employer illegally kept servers’ tips; paid workers less than minimum wage and no overtime; did not provide split shift premiums for working both the lunch and dinner shifts; and violated California’s paid sick leave law and record-keeping obligations.

Labor Commissioner Lilia Garcia-Brower admonished that: “A significant amount of the payment due to workers, in this case, is from stolen tips” and “California law prohibits employers from taking tips left by customers for servers.”

The Commissioner’s office promptly investigated after workers complained to community-based organizations Asian Americans Advancing Justice- Asian Law Caucus and the Chinese Progressive Association.

Citations of this magnitude can destroy a business.  It is essential to pay the required minimum wage, overtime, and tips to hourly workers. Employers must correctly implement paid sick leave benefits and issue complete and accurate pay stubs in compliance with California law.

For more information, please contact Tim Bowles, Cindy Bamforth or Helena Kobrin.

See also:

• Recalculating – California Supreme Court Increases Premium Pay for Missed Meal and Rest Breaks (August 6, 2021)
• Good Workplace Policy is Boss – Our Template Handbook & Forms for 2021 (May 28, 2021)
• Please: Document Workplace Meal Breaks – Require Employees to Clock Out and Back In on Their Meals (June 4, 2021)
• The Basics of Overtime – Five Rules for California (April 27, 2018)

Cindy Bamforth
August 26, 2021