The California Labor Commissioner’s Office (LCO) recently announced a significant development in a case against the Cheesecake Factory and two janitorial contracting companies. After a thorough investigation, a $1 million settlement has been reached to address the underpayment of 589 janitorial workers. This landmark resolution serves as a reminder of the importance of fair wages and highlights the consequences faced by companies that fail to uphold their obligations to their employees.
Settlement details
In the October 2023 settlement, the Cheesecake Factory agreed to pay $750,000 in back wages to the affected janitors. Additionally, Americlean Janitorial Services Corp. has been held responsible for paying $200,000, reflecting the joint accountability of both the Cheesecake Factory and its contractors. Moreover, as part of the resolution, Magic Touch, one of the contracting companies, issued a formal apology to the workers. Furthermore, the settlement includes continued labor education for an additional two years, focusing on training regarding annual wages and hours.
Scope of affected workers
The janitors involved in this case were employed at Cheesecake Factory restaurants across eight locations in San Diego and Orange County between August 31, 2014, and August 31, 2017. Under the terms of the settlement agreement, these workers may now be entitled to receive their owed wages and additional damages.
Investigations and Violations
The investigation conducted by the LCO was triggered by complaints of wage and hour violations lodged against Cheesecake Factory establishments in San Diego County. Upon examination, the LCO discovered that the workers had been subjected to considerable exploitation. Shockingly, it was revealed that these individuals were consistently logging up to 10 hours of unpaid overtime every week, in direct violation of labor laws.
Testimony of an Affected Worker
During a press conference hosted by Magic Touch, Naxhili Perez, who worked at a Cheesecake Factory restaurant from 2016 to 2018, spoke out about her experiences. Perez shed light on the grueling nature of her work, recounting long nights spent cleaning the restaurant’s kitchen and dining room. Her testimony serves as a poignant reminder of the challenges faced by janitorial workers and the detrimental impact of wage exploitation on their livelihoods.
Disbursement of Settlement
According to the information provided by MCTF Executive Director Yardenna Aaron, both the Cheesecake Factory and its contractors have already fulfilled their respective payments as outlined in the settlement agreement. However, efforts are still underway to locate over 589 workers who have yet to receive their rightful back pay.
Finding the workers
To ensure that every affected worker receives their owed wages, the Magic Touch organization (MCTF) is employing various strategies. MCTF is leveraging the power of social media postings, informal networks, and liaisons with its area offices in San Diego and Orange County. These efforts extend to reaching out to other agencies, employers, and community sounding boards, all in an attempt to locate the workers who are still awaiting their back pay.
Impact of undercutting
MCTF Executive Director Yardenna Aaron stresses the detrimental effects of undercutting wages. Not only does this practice make it difficult for responsible contractors who adhere to the law and pay fair overtime and minimum wages, but it also brings down the entire floor and perpetuates a cycle of exploitation. The settlement in this case serves as a stark reminder of the need for greater vigilance in ensuring proper pay for all workers.
The million-dollar settlement achieved in the case against the Cheesecake Factory and its subcontractors demonstrates the significant consequences faced by companies that fail to pay their workers fairly. It also highlights the potential for exploitation within the janitorial industry. By addressing these grievances and securing proper compensation for affected individuals, the settlement helps shed light on the urgent need for fair wages and adequate protection of workers’ rights.