Owners of three Thai restaurants in the greater Los Angeles area have been cited for wage theft of more than $1 million, accused by state labor officials of paying employees less than $5 an hour for 10-hour shifts and depriving them of breaks.
The violations at Sanamluang Cafe in North Hollywood, Orchid Thai Cuisine in Arcadia and Orchid Thai in Baldwin Park involved 22 workers, according to the state Department of Industrial Relations.
“These conditions — long hours with no breaks and sub-minimum wages — are classic examples of wage theft, and employers who make their profit by breaking the law will be held accountable,” Labor Commissioner Julie A Su said in a statement.
Sanamluang Cafe, at 12980 Sherman Way in North Hollywood, was cited $833,707, including $708,457 payable to nine workers and civil penalties of $125,250. Workers at the eatery are owed minimum and overtime wages, damages, and money for waiting time penalties and meal and rest period premiums.
The Labor Commissioner’s Office launched an investigation into Sanamluang Cafe in August 2017, determining that owners Surapong and Viriya Chinotaikul paid their workers a flat rate of $50 for a 10- to 11.5-hour shift each day with no meal or rest breaks.
North Hollywood is part of Los Angeles where the minimum wage is $12 an hour for companies with 25 or fewer workers. So someone working 10-hour shift at that rate would gross $120 a day.
Employees at the restaurant were represented by the Thai Community Development Center and Bet Tzedek Legal Services. Bet Tzedek released a statement from one of the workers who declined to be identified.
“The day I started working I felt like I was lucky to get the job,” the employee said. “I never thought that I would face work conditions that included extended working hours, unlawful wages and other hardships. I was taken advantage of by the greed of the owner.”
Noncompliance penalties
After meeting with state investigators, Sanamluang owners failed to comply with labor laws and additional penalties to recover underpayments through April 2018 were assessed. Sanamluang Thaifood Inc. (doing business as Sanamluang Cafe) and its owners are jointly and individually liable for the citations.
“Despite our investigation, they continued to commit wage theft and pay them $50 a day,” said Paola Laverde, a spokeswoman for the Labor Commissioner’s Office. “That’s why the audit was extended.”
The owners, who have appealed the citation, could not be reached for comment Thursday.
More of the same …
An investigation into the operations at Orchid Thai Cuisine, at 1311 S Baldwin Ave. in Arcadia, and Orchid Thai, at 1634 Puente Ave in Baldwin Park, was launched in July 2017 after the state received complaints from employees who reported underpayment of wages to civil rights group Asian Americans Advancing Justice — Los Angeles.
Investigators found both restaurants paid their workers a flat rate of $45 to $50 a day for shifts of up to 10 hours. The businesses also ordered workers to prepare for the day and clean up afterward off the clock, and they failed to pay split shift premiums as required by law.
The minimum wage in Arcadia and Baldwin Park also is $12 an hour for businesses with 25 or fewer employees, so an employee working a 10-hour shift at minimum wage would gross $120.
Orchid Thai Cuisine in Arcadia was cited $407,883, with $307,133 payable to 11 workers and $100,750 in civil penalties. The Baldwin Park restaurant was cited $85,856, with $50,056 payable to two workers and $35,800 in civil penalties.
The two restaurants are owned by Chakri, Revedee, Chavin, Charlene and Chanica Veranunt, who formed separate corporations for each of the businesses. The corporations and each owner are jointly and individually liable for the citations, investigators said.
The Veranunts could not be reached for comment.
Wage theft pervasive
State and federal officials bring hundreds of wage theft claims each year against California service industries, including car washes, garment contractors, caregiver facilities, restaurants and construction firms.
At Cheesecake Factory restaurants in Brea, Irvine, Huntington Beach, Newport Beach, Mission Viejo, Escondido and San Diego, 559 janitors were cheated out of their wages, the California Labor Commissioner said in June. The restaurant chain was found jointly liable with its janitorial subcontractors for $4.57 million in unpaid minimum wages and overtime, meal and rest period violations, as well as damages, waiting-time penalties and a failure to provide itemized pay stubs.
In July a Southern California car wash mogul who was cited for cheating more than 800 workers and destroying evidence was ordered to pay $4.2 million in back wages and penalties after a two-year court battle with federal authorities.
Vahid David Delrahim, of Los Angeles, failed to pay his workers minimum wage or overtime at a dozen car washes in Orange, Los Angeles, San Bernardino and Ventura counties, according to the U.S. Department of Labor.
A report this summer said among 500 large companies cited for $8.8 billion in wage theft since 2000, California was home to more than half of them.
The companies — including mega brands Wells Fargo, Children’s Hospital Los Angeles, 24 Hour Fitness, Oracle and Smart & Final — have boosted their profits by forcing employees to work off the clock or by not paying their required overtime, according to “Grand Theft Paycheck: The Large Corporations Shortchanging Their Workers’ Wages.”
The longstanding practice of denying workers fair wages is “pervasive” and “goes far beyond sweatshops, fast-food outlets and retailers,” according to Philip Mattera, lead author of the report.
