Chinatown Restaurant Pays $525K Settlement

The San Francisco Chronicle reported that the city of San Francisco settled with a Chinatown Restaurant for $525,000 in back wages and penalties for wage-and-hour violations. The restaurant allegedly had employees working 11- to 14-hour days, six days per week for below $4 per hour.

The settlement, according to the article, is the single largest the city has received. San Francisco’s Office of Labor Standards Enforcement is responsible for enforcing the city’s labor laws, which include a higher minimum wage ($10.55 an hour) than the state rate.

The city’s complaint against the restaurant alleged that employees were given fake three-hour work schedules, paid by check at minimum wage for those three hours, and then paid the rest in cash (at well below the minimum wage).

City Attorney Dennis Herrera brought the lawsuit. “We want to make sure that we’re sending a message that we’re serious about fighting wage theft and policing unfair competition,” said Herrera.

San Francisco enacted specific labor laws that apply to those employees who work in the city. These laws include the higher minimum wage, paid sick leave and a health care security ordinance. These city ordinances also come with mandatory posting requirements. 

Gail Cecchettini Whaley, Employment Law Counsel/Content

CalChamber’s 2013 San Francisco Labor Laws – All Employers contains the most current employment notices required by San Francisco ordinances.