Cheesecake Factory, contractors pay $1M in wage theft case
Janitors for Cheesecake Factory may split a $1 million settlement, one of the first uses of a state law designed to hold big companies and contractors accountable for wage theft.
Former Cheesecake Factory janitorial worker Yadira Santos speaks in San Diego. Photo by Ariana Drehsler for CalMatters
Good morning, Inequality Insights readers. I’m California Divide reporter Wendy Fry.
Hundreds of janitors who cleaned eight Cheesecake Factory restaurants in southern California could receive their share of a $1 million settlement for wage theft, according to CalMatters reporter Jeanne Kuang. The state’s Labor Commissioner’s office accused the restaurant chain and its contractors of forcing workers to work overtime without pay and denying them breaks.
“One time I recall staying two hours after my eight-hour shift,” said Yadira Santos, a former janitor, who spoke at a news conference this week announcing the settlement. “Ultimately that meant we had to work overtime night after night. And we never got paid for that extra time.”
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The settlement is one of the first uses of a 2015 law that holds companies jointly responsible for workplace violations by their contractors. The law aims to prevent wage theft in low-wage industries that rely on subcontracting and outsourcing. Reached last fall, the agreement marks a long-delayed resolution in one of the state’s most significant cases alleging wage theft.
The case also shows the challenges of enforcing California’s strict labor laws and protecting workers’ rights, Kuang reports. It took more than five years for the state to reach an agreement with the companies, which were initially facing a $4 million citation. The state also had to partner with a workers’ advocacy center to encourage the workers, many immigrants, to cooperate with the investigation.
The state and the center are now looking for more former workers who may be eligible for a payout. They are asking janitors who worked at Cheesecake Factory restaurants in Orange and San Diego counties between 2014 and 2017 to call (619) 767-2039. For a deeper look at the issue, check out CalMatters’ investigation into wage theft.
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California Divide is a statewide media collaboration to raise awareness and engagement about poverty and income inequality through in-depth, local storytelling and community outreach. The project is based at CalMatters in Sacramento with a team of reporters deployed at news organizations throughout California.
