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Cheesecake Factory Found to Be Partly Liable in $4.2 Million Wage Theft Case


Earlier this week, the California Department of Industrial Relations announced that Cheesecake Factory was partially liable for unpaid wages due to over 500 janitorial workers that worked at eight of the restaurant’s Southern California locations.  These workers started work around midnight and were found to have routinely logged up to 10 hours of unpaid overtime work each week as they were not allowed to leave until a Cheesecake Factory kitchen manager inspected their work.  This often resulted in the janitorial staff having to stay later and continue working, off the clock.  As well, it was found that these janitors routinely worked without proper meal or rest breaks.  Consequently, this was found to be unpaid work which resulted in a wage theft claim arising.

For those wondering, the janitorial staff was not directly employed by Cheesecake Factory.  However, a 2015 California law signed into law by Governor Jerry Brown stipulates that employers who utilize subcontractors for labor needs can be held to be liable for a subcontractor’s workplace violations.  As well, a 2016 law specifically provides that employers that contract for janitorial services are to be jointly liable for unpaid wages.

This $4.2 million liability (split between Cheesecake Factory, Americlean Janitorial Services Corp. (which had a contract to provide the janitorial workers), and Magic Touch Commercial Cleaning (the subcontractor which actually provided the workers) is considered to be one of the largest wage theft cases in regard to janitorial workers in recent memory.  Given that wage theft has been found to be a recurring problem in California (and far too common in a ‘cash based’ pay position like janitorial staff), attention now turns to whether other employers in the state will be found to have committed similar wage theft violations.  California employers:  tread carefully.


For additional information on the 2015 law:  https://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=201320140AB1897

For additional information on the 2016 law:  https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?sectionNum=238.5.&lawCode=LAB

For additional information on the $4.2 million wage theft:  http://www.latimes.com/business/la-fi-cheesecake-factory-20180611-story.html?outputType=amp

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