Restaurants Hit With Fines for No Workers' Comp

Investigators from the California Labor Commissioner’s Office issued over $800,000 in fines to businesses in the restaurant industry for numerous labor law violations during a statewide enforcement effort.

A total of 29 investigators conducted 245 inspections in 26 counties across the state on Jan. 21 and 22. The inspections revealed that 129 of the 143 employers cited failed to carry workers’ compensation insurance. Last year’s number of employers cited for not having workers’ comp insurance was 2,570. The Labor Commissioner works to identify and target employers that do not carry the insurance.

“We issued penalties of $676,000 to employers who failed to carry workers’ compensation during this enforcement action,” said California Labor Commissioner Angela Bradstreet. “All businesses must provide workers’ compensation insurance for their employees. If they continue to operate without the proper coverage, we will refer the case to the local district attorney’s office for possible criminal prosecution.”

Other violations encountered included failure to: pay minimum wage or overtime, provide itemized deductions to employees, and abide by child labor laws for minors under the age of 18.

To request a report of the businesses cited and labor violations encountered in this enforcement activity, email the Department of Industrial Relations at: Communications@dir.ca.gov.