Calif. restaurant owner found in violation of labor laws

The owner of buffet restaurant in Oakland, Calif. has been charged with 16 felony and misdemeanor counts. The accusations include payroll tax fraud, workers' compensation fraud, failure to pay state minimum wage and overtime and dissuading a witness.

Alameda County District Attorney Nancy O'Malley called the owners treatment of her employees "unconscionable."

A June investigation from the Labor Commissioner's office determined the defendant had falsified the restaurant's paperwork, including time sheets and payroll records. While the owner's records showed between 6 and 12 employees with wages between $25,000 to $45,000, there were actually 60 staff members at the buffet from 2010 to the investigation date.

The investigators interviewed 19 victims in Spanish and Mandarin, finding a large number of labor violations, according to a release from the California Labor Commissioner. The employees claimed they worked 12 to 13 hour shifts more than five days per week without breaks. The majority of those interviewed received monthly cash payments from their employer. Some said their income came solely from customer tips.

The total unpaid minimum wage for all employees amounted to more than $520,000, while back overtime wages added up to more than $550,000.

Under the Fair Labor Standards Act, it is necessary for employers to pay workers the legal minimum wage, as well as maintain proper wage and hour records. Attendance software can help workplaces comply with labor laws.


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