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San Jose Wage Theft Claim Settled for $1 Million

Posted on in Employment

CA wage lawyerFor employers, cutting costs is just one of several methods for increasing profits. However, when these cuts come at the expense of employees and involve denying them the wages they are entitled to, business owners can find themselves facing criminal charges, as well as civil penalties. Wage theft claims are a serious matter in San Jose and one that state officials relentlessly pursue. A recent case involving a popular and longtime local restaurant shows how employers can be held accountable for the losses they cause their workers to incur.

San Jose Burrito Chain Liable for Back Wages

In 2017, local workers began lodging complaints with state officials regarding unfair wage practices on the part of the Burrito Factor. The local chain restaurant has been in business for more than 20 years, with four locations throughout the San Jose area. The case has finally been resolved and the company has agreed to pay a $1 million settlement, which will be spread among more than 200 impacted employees.

The original complaint was based on allegations that the business owners paid the workers less than minimum wage. The California Labor Commissioner’s Office eventually found that, in addition to wage theft, the Burrito Factory was engaged in other types of behaviors which violated the state’s labor laws:

  • Denying mandated work breaks;
  • Not keeping accurate payroll records; and
  • Paying employees in cash or ‘under the table’ to avoid compliance laws.

The Burrito Factory is one of several local businesses Santa Clara County officials are currently looking at as part of the “Wage Theft Is a Crime’ campaign. While the campaign has largely targeted workers in the restaurant industry, they are considering expanding to include members of the local construction industry.

Compensation for Wage Theft and Other Labor Violations

As a result of the recent settlement with the Burrito Factory, impacted employees from the restaurant chain will receive the back wages they were owed; furthermore, Burrito Factory will be required to pay $100,000 as a civil penalty. This is in accordance with California labor laws, which allow employees to seek compensation for their actual costs in addition to whatever other damages they may be entitled to in a claim.

The case against the Burrito Factory and the settlement amount is meant to send a strong message to other employers in the area that violations of labor laws and unfair employment practices, in general, will not be tolerated in San Jose.

Contact Our San Jose Attorneys Today for Help

When wage theft occurs, employees often feel that they have no legal recourse. At the Jachimowicz Law Group, we work with you to help you get the wages you were denied, along with other types of compensation you may be entitled to. To discuss your case, call 408-246-5500 or contact our passionate San Jose employment law attorneys online and request a free consultation today.

 

Source:

https://sanjosespotlight.com/burrito-factory-in-san-jose-settles-wage-theft-claims-for-1-million/

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