Three San Francisco restaurants get heat for underpaying workers

Xue Restaurant, Liu's Restaurant and Tsing Tao Restaurant in San Francisco recently settled a labor dispute for $339,719. Previous investigations by The Department of Industrial Relations' (DIR) Division of Labor Standards Enforcement alleged the employers were not paying employees the minimum wage and overtime they were owed for their time and attendance or maintaining accurate records of hours worked.

"California workers deserve to be paid everything they are owed for their work," said Christine Baker, the DIR director. "Employers who deny their workers the pay they are rightfully owed will be held accountable to remedy the issue and restore wages due."

In this case, the restaurants have agreed to issue the wages employees had rightfully earned for their hours worked. In addition to reinstating those wages, the employers have agreed to bring payroll practice up to compliance and adhere to applicable labor laws in the future.

It's important for businesses to note that some states, like California, have stricter standards than even the federal regulations. The Department of Labor's Fair Labor Standards Act (FLSA) establishes that all workers must receive at least $7.25 per hour for all of their employee attendance in addition to time-and-half their standard hourly rate if they work overtime, but California also caps the work day at eight hours, so employers must pay premium wages for any additional tasks.