City of Los Angeles Demanding $1.45 Million In Penalties For Alleged Minimum Wage Violations Featured

  03 July 2017

The City of Los Angeles is demanding that the restaurant chain Carl's Jr., pay $1.45 million in restitution and penalties for alleged minimum wage violations.

 City of Los Angeles attorney Mike Feuer and the Office of Wage Standards(OWS) claim the company repeatedly failed to pay minimum wage to dozens of workers at multiple LA locations."Our offices will always aggressively stand up for workers to ensure they get the wages they're owed, and all the protections and benefits the law demands," said Feuer, according to a Los Angeles City Attorney's Office press release.The OWS and the City Attorney's Office launched a probe into Carl's Jr. after receiving a report from an employee. They found the fast food chain allegedly did not pay 37 employees a minimum wage of $10.50 per hour from the beginning of July 2016 through the end of that year. The City is seeking $910,010 in penalties for the 37 employees by July 24, 2017. The City is also demanding an additional $541,423 in penalties and fines for the alleged violations of the City’s minimum wage law, and failure to post the required notices on the current minimum wage, employee rights and sick time benefits. Carls Jr. issued a statement asserting that the demand “is, on its face simply, unreasonable… [i]t is also unconstitutional in that it disregards the Excessive Fines Clause of the Constitution to obtain money that will not go to our employees and will have no connection to the matter at hand." The company stated that CKE it had made "an inadvertent payroll error" and has already paid the employees the $5,400 that they were owed in back wages. Read more here.