Tag: unions

Daily California Wage Theft Violations Update – September 15, 2025

Welcome to the daily roundup of wage theft violations and labor law enforcement actions from the California Department of Industrial Relations (DIR). This post highlights recent citations issued by the Labor Commissioner’s Office, focusing on efforts to combat wage theft. No new press releases were issued today, but below are summaries of the most recent cases from the past month. These actions underscore ongoing efforts to protect workers and hold employers accountable.

Recent Violations

September 4, 2025: L.A. Restaurant Cited Over $680,000 for Wage Theft Affecting 48 Workers

The Labor Commissioner’s Office BOFE Unit cited J BBQ, a Koreatown restaurant operated by Midri, Inc. and owner Byung Kwan Lee, for multiple violations including unpaid wages, denied meal and rest breaks, inaccurate wage statements, and failure to pay split shift premiums. The investigation, initiated by a referral from the Koreatown Immigrant Workers Alliance, revealed that workers were often required to stay on premises during breaks. Total citations amount to $680,238, with $538,638 payable directly to the affected workers.Daily California Wage Theft Violations Update – September 15, 2025

Welcome to the daily roundup of wage theft violations and labor law enforcement actions from the California Department of Industrial Relations (DIR). This post highlights recent citations issued by the Labor Commissioner’s Office, focusing on efforts to combat wage theft. No new press releases were issued today, but below are summaries of the most recent cases from the past month. These actions underscore ongoing efforts to protect workers and hold employers accountable.

Recent Violations

September 4, 2025: L.A. Restaurant Cited Over $680,000 for Wage Theft Affecting 48 Workers

The Labor Commissioner’s Office BOFE Unit cited J BBQ, a Koreatown restaurant operated by Midri, Inc. and owner Byung Kwan Lee, for multiple violations including unpaid wages, denied meal and rest breaks, inaccurate wage statements, and failure to pay split shift premiums. The investigation, initiated by a referral from the Koreatown Immigrant Workers Alliance, revealed that workers were often required to stay on premises during breaks. Total citations amount to $680,238, with $538,638 payable directly to the affected workers.

Quote from Labor Commissioner Lilia García-Brower: “Restaurant workers are often at risk of wage theft, especially when employers ignore laws around pay practices and required break periods. These citations reflect our continued efforts to hold employers accountable and ensure that workers receive the full wages and protections they are legally entitled to regardless of immigration status.”

For more details: Full Press Release

August 21, 2025: L.A. Developers Cited $2.3 Million for Wage Theft at Construction Sites Affecting 124 Workers

The BOFE unit issued citations totaling $2,345,384 to developers including Todd Wexman, Bridget Wexman, Jeffrey Farrington, and entities like San Fernando Studios LP for denying overtime, paying below minimum wage, failing to provide sick leave, and issuing inaccurate wage statements. Workers received multiple pay stubs from different entities to evade overtime laws. The violations occurred at four sites in Los Angeles, with an average of $18,900 owed per worker, including over $165,000 in interest.

The investigation highlighted a scheme to avoid labor laws through corporate entities. BOFE has recovered over $43.7 million in stolen wages since January 2022.

For more details: Full Press Release

July 16, 2025: Ritz-Carlton and Subcontractors Cited Over $2 Million for Misclassifying 155 Janitors

The Labor Commissioner’s Office cited the Ritz-Carlton Hotel Company LLC and subcontractors Empire Unistar Management Inc., TK Service, and JM Spa Group for misclassifying janitors as independent contractors, denying them minimum wage, overtime, sick leave, and workers’ compensation. The violations spanned from July 2021 to January 2024 at the Half Moon Bay hotel. Total citations exceed $2 million, with $1.9 million payable to workers; joint liability of $746,001 applies if subcontractors fail to pay.

Quote from Labor Commissioner Lilia García-Brower: “We’ve seen this pattern before, employers hire or contract with out-of-state janitorial companies, thinking they can sidestep California labor laws. The use of subcontracting to evade legal obligations is a long-standing practice in this industry and we will pursue such cases aggressively.”

For more details: Full Press Release

Resources for Workers and Employers

  • If you’re a worker experiencing wage theft or labor violations, contact the Labor Commissioner’s Office at 1-833-LCO-INFO (833-526-4636) for assistance in multiple languages.
  • Employers seeking guidance on compliance can email MakeItFair@dir.ca.gov.
  • Stay updated by following the Labor Commissioner on Facebook and X (Twitter).

This blog is generated based on publicly available DIR news releases. Check back tomorrow for updates!

fraud by design workers cheated rinse & repeat:The Science of Cheating: How Employers Systematically Evade Workers’ Compensation

The Science of Cheating: How Employers Systematically Evade Workers’ Compensation
In California, workers’ compensation insurance isn’t optional. It’s the law.

But some employers—especially those in staffing, agriculture, security, janitorial, and food production—have turned breaking that law into a business strategy. Not only do they cheat the system, they do it on purpose, following a pattern that repeats itself year after year, worker after worker.

🧩 The Playbook: How It Works
Step 1: Create a shell company.
They start a staffing agency or labor outfit, often with a vague name, sometimes even using a family member as the front.

Step 2: Skip workers’ comp.
By not buying legally required workers’ compensation insurance, they avoid tens or hundreds of thousands of dollars in premiums. Some falsely claim their workers are “independent contractors.” Others just lie outright.

Step 3: Hide injuries, silence complaints.
Workers who get injured are told to “go home and rest.” They’re discouraged from filing claims, sometimes even threatened with termination or deportation.

Step 4: Run it for 2–3 years.
The company grows fast—because it’s illegally cheap to operate. No comp premiums. No benefits. No accountability.

Step 5: Get caught.
Eventually, a whistleblower speaks up, or the state audits them, or someone gets seriously injured and files a public complaint.

Step 6: Declare bankruptcy.
Here’s the kicker: once they’re caught, they shut down the company, walk away from the debts, and start all over again under a new name.

⚠️ The Consequences
For the workers, the damage is devastating:

No medical care for serious injuries.

No wage replacement during recovery.

No protection from retaliation.

While the workers are left hanging, the employers walk free. Sometimes they’re fined. Occasionally they’re charged. But more often than not, they negotiate down their penalties, avoid jail, and return under a new corporate identity.

This isn’t just unethical.
It’s a calculated abuse of the system—and it’s happening across California.

🛡️ How to Fight Back
If you or someone you know was injured working for a company without workers’ comp insurance, there’s still hope:

File a claim through California’s Uninsured Employers Benefits Trust Fund (UEBTF)

Document everything—witnesses, pay stubs, text messages, medical visits

Seek legal help—you may have the right to sue the employer personally

Join forces with organizations like the Workers Rights Compliance Alliance (WRCA)

We investigate these employers, expose their fraud, and connect victims with real legal help.

📣 We Need to Talk About This
These scams don’t just hurt individual workers—they damage the entire economy. Law-abiding employers get priced out. Workers’ trust in the system erodes. And fraud becomes normalized.

It’s time to name it. Shame it. And stop it.