Two California Restaurants Fined Almost Two Million for Violations

Ukiah, CAOne wonders if it might have been cheaper to pay the overtime in accordance with overtime pay laws, rather than face a nearly two-million-dollar fine. But that’s what the operators of two Ukiah restaurants are facing after the Office of the California Labor Commissioner decided it needed to play hardball after 47 workers were found to be victims of wage theft for a period of three years.

According to a release from the Office of the California Labor Commissioner (11/14/13), a joint investigation by the Labor Commissioner’s office and the US Department of Labor found a basket of violations to California overtime law and other labor statutes observed by the state as well as federally against workers employed by WT Yupin Inc., undertaking business as the Walter Café, and Yupin Inc., doing business as Ruen Tong Thai Cuisine.

The investigation found that workers at the two establishments routinely worked, at minimum, 11.5 hours each day for up to 6 or 7 days per week without meal breaks, overtime pay or even a provision for minimum wage. The investigation also found that some workers were forced to sign time cards containing false information, which in some cases shaved the recorded hours denoted to less than half the hours they actually worked. Others were paid cash with no paper trail or accompanying documentation.

The violations to overtime laws, alleged wage theft and other violations, covered a three-year period from June 19, 2010, through June 15, 2013.

“Wage theft is a very serious problem,” said Christine Baker, Director of the Department of Industrial Relations (DIR), in comments contained in the release. “Not only does it affect workers who have been cheated out of hard earned pay, but the vast majority of business owners who treat their employees respectfully get undercut by this unfair and illegal practice.”

California Labor Commissioner Julie A. Su, who has maintained an aggressive stance against allegations of unpaid overtime and other labor violations, made the point that “the extraordinary amount of wages assessed at these two restaurants goes to show that if unchecked for too long, wage theft is highly detrimental to workers, and the competitive advantage gained relative to law-abiding employers is significant, harming the entire business community,” said Labor Commissioner Su.

The fines totaled $1.9 million and break down as follows: $1,086,435.79 in unpaid minimum wage, $376,640.31 in unpaid overtime and $153,582.41 in penalties for no meal period premiums. In addition, a total of $189,250 as civil penalties were assessed for violating the minimum wage and overtime laws and for not providing workers accurate wage statements as required.

Co-owners, Yaowapha Ritdet and Steve Walter, are being held liable both individually and jointly for Labor Code violations, according to the release.

“It’s disappointing to see workers at popular local restaurants being exploited,” said Ruben Rosalez, regional administrator for the DOL’s Wage and Hour Division. “We value this opportunity to work with our state colleagues to fully address both the state and federal labor violations that the servers and back-of-the-house employees at the restaurants have endured,” in deference to California overtime laws.