San Francisco Grocer Settles With Federal Regulations
Federal regulators with the U.S. Department of Labor have agreed to settle a wage and hour lawsuit brought against San Francisco grocery store chain Casa Guadalupe. The owner of the well-known grocery store in San Francisco’s Mission District neighborhood has agreed to pay more than $120,000 after admitting to investigators from the Wage and Hour Division (WHD) that he willfully failed to issue time-and-a-half overtime pay to employees, in addition to failing to maintain proper records of hours worked by its staff.
Federal law, under the Fair Labor Standards Act (FLSA) an employer is required to pay overtime compensation of 1.5 times an employee’s base/regular rate for all hours worked in excess of 40 hours in a workweek. Moreover, California law, under the Fair Employment and Housing Act, (FEHA) requires employers to pay overtime compensation of 1.5 times an employee’s base/regular rate for all time worked over eight hours a day or forty hours a week.
The local grocery chain short-changed its employees by only providing pay at their regular base pay rather than compensating them according to state and federal employment laws. The settlement that has been reached requires the store to pay $110,071 to be split among 25 current and former employees, as well as pay $11,687 in civil penalties to the federal government. Lastly, Casa Guadalupe must train its managers on proper FLSA compliance procedure and hire a third-party auditor to oversee FLSA issues for the next three years.
If you or someone you know has failed to receive overtime compensation or compensation for missed meal and rest periods, please contact the attorneys at Khorrami, LLP for a confidential consultation regarding your potential claims.