Tag Archives: California Labor Law

Hospitality Industry Employment Risks: California Restaurants Fined More Than $1.9 Million For “Wage Theft Violations”; 47 Workers Paid Cash, No Minimum Wage Or Overtime

“…Some of the workers were forced to sign timecards containing falsified information stating they had only worked between five and six Hospitality Industry Wage Violation Lawsuitshours each day, the agency said. Others were paid in cash with no information on the total hours worked, rate of pay or deductions provided…The 47 workers are due $1,086,436 in unpaid minimum wages, $376,640 in unpaid overtime and $153,582 for no meal period premiums, the agency said. In addition, a total of $189,250 in civil penalties were assessed for wage violations…”

State labor regulators fined two Ukiah restaurants more than $1.9 million Thursday for alleged wage theft violations over three years. The violations at Walter Cafe and Ruen Tong Thai Cuisine involved 47 workers and included overlong workdays, failure to pay overtime and the forced falsification of timecards.

The fine “is one of the larger audits for the restaurant industry,” said Hennessy. The investigation is ongoing, she added, leaving open the possibility of additional penalties. Ritdet and Walter are being held both individually and jointly liable for the alleged Labor Code violations.

Employees at their two restaurants regularly worked at least 11.5 hours a day, six or seven days a week, with no meal breaks, according to a Labor Standards Enforcement division news release. The restaurants did not pay minimum wage or overtime, in violation of the law, according to the agency.

The investigation started in June 2012 after an anonymous complaint was filed. It was conducted by state and federal labor regulators and examined employment practices at the restaurants from June 19, 2010, through June 15, 2013.

For more: http://www.pressdemocrat.com/article/20131114/articles/131119756

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Filed under Employment Practices Liability, Liability, Management And Ownership, Risk Management, Theft

Hospitality Industry Legal Risks: California Hotel Faces Class-Action Lawsuit Over “Fixed Percentage Withholdings” From Room Service Tips; Violation Of California Labor Law

“…(plaintiff) claims the hotel pools the tips of its room service delivery staff and withholds a fixed percentage of them…the withholdings, which have been standard policy since at least 2003, violate California labor Hospitality Industry Class Action Lawsuitslaw…he seeks compensatory and exemplary damages for unfair competition, conversion and money had and received…”

Hyatt Hotels and the Manchester Financial Group steal workers’ tips to cover “glass breakage,” whether employees have broken any glasses or not, a class action claims in Superior Court. Former room service delivery worker Leonardo Acosta sued Host Hotels and Resorts, Manchester Financial Group and Hyatt Hotels Corp.

“Hyatt and the other defendants maintain that the monies are withheld pursuant to Hyatt’s policy of reimbursing themselves for purported ‘glass breakage.’ The same percentage of gratuities was withheld from all room service delivery workers in plaintiffs’ tip pool, without regard to the amount of breakage, if any, during any pay period.

The same percentage of gratuities was withheld from all room service delivery workers in plaintiffs’ tip pool, without regard to whether any purported breakage was caused by any dishonest or willful act, or by the gross negligence of any employee … [and] without regard to the individual, if any, responsible for the alleged breakage,” Acosta claims.

For more:  http://www.courthousenews.com/2013/01/02/53536.htm

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Filed under Employment Practices Liability, Labor Issues, Liability, Management And Ownership, Risk Management