United States | $1.1 Million in penalties issued to Buena Park restaurant over wage and sick leave violations

March 12, 2025

California Department of Industrial Relations | The Labor Commissioner’s Office (LCO), which operates under the Department of Industrial Relations (DIR), has taken enforcement action totaling more than $1.1 million against Buena Park restaurant Food Source LLC for wage theft violations and failure to comply with paid sick leave requirements.

The total includes $532,561 in citations, issued to compensate 73 affected workers for multiple wage theft violations. These violations include unpaid wages, failure to pay overtime, unpaid contract wages, liquidated damages, and incomplete wage statements.

Additionally, the LCO filed a lawsuit for $575,803, seeking unpaid wages, damages, and penalties for the employer’s failure to comply with paid sick leave laws.

The lawsuit also addresses violations such as denying workers access to paid sick leave, failing to document sick leave availability on pay stubs, leaving workers uninformed about their legal rights, and not providing supplemental paid sick leave during the COVID-19 pandemic.

In total, these violations impacted at least 90 workers at the restaurant.

Under California’s Healthy Workplace, Healthy Families Act of 2014, employees who work at least 30 days in a year are entitled to paid sick leave, accruing one hour for every 30 hours worked. Employees can begin using their sick leave after 90 days of employment, with employers allowed to limit usage to 40 hours (five days) per year.

Paid sick leave can be used for personal or family health care needs, including preventive care. Accrued balances may carry over, up to a cap of 80 hours (ten days). Certain employees, such as those covered by collective bargaining agreements, may be exempt.

— Accurate at time of publication | February 2025

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