A time and attendance lawsuit seeking overtime back pay from a vegan raw foods restaurant chain is partially responsible for the chain's decision to close all eight of its Northern California locations.
Ravi Shankar, a former bookkeeper for Cafe Gratitude, sued the company in October. Shankar alleges his position was erroneously salaried when the law dictates that he should have been paid by the hour. California state law dictates that overtime employee attendance is characterized as time worked in excess of eight hours in a day or 40 in a week.
In a recent post on the company's website, Cafe Gratitude owners Matthew and Terces Engelhart stood behind the legality of their employee policies but claimed the costs of defending them in court were too high to allow them to keep the locations open.
Shankar's attorney, Stephen Sommers, is also representing another Cafe Gratitude employee who is suing the company over its tip-pooling policy. Inside Scoop San Francisco reports that Sommers expressed doubts about the validity of the Engelharts' claims.
"There's no reason, financially, for them to close eight locations," he said, as quoted by the news source, noting that it is currently less than $200,000.
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