Burrito Factory in San Jose Settles Wage Theft Claims For $1 Million


A San Jose restaurant has reached a $1 million settlement with state regulators over wage theft complaints by 239 workers, the state Department of Industrial Relations announced Monday.

Burrito Factory has four locations in southwest and South San Jose, and has been in business for over 20 years.

The California Labor Commissioner's Office, a division of the Department of Industrial Relations, began an investigation in 2017 that found workers at the restaurant were allegedly receiving less than minimum wage through inadequate pay for overtime and split shifts.

The restaurant also did not provide legally mandated meal breaks, paid workers in cash and did not keep accurate payroll records, according to the labor office.

"The message is clear: compliance with labor standards in California is not optional," state Labor Secretary Julie Su said in a news release. "When workers who are not paid come forward and demand their just day's pay, the State is on their side."

According to the office, settlement negotiations began in February after the restaurant received citations and "demonstrated its willingness to comply with state labor laws."

Employees will begin receiving compensation in July, and the restaurant will pay an additional $100,000 in civil penalties. Burrito Factory could not be reached for comment.

The settlement comes after a series of investigations initiated by Su's office, dubbed the "Wage Theft is a Crime" awareness campaign.

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