In a recent development, the proprietor of two Wingstop restaurants in the Los Angeles area has agreed to a settlement of $667,414, including back wages and fines, to resolve allegations of underpayment involving 309 employees. The Costa Mesa-based Far West Restaurant Group, LLC, which owns and operates the independently owned locations in East Los Angeles and Walnut Park, was found guilty of wage theft violations that transpired between 2017 and 2020.
An investigation carried out by the Los Angeles County Department of Consumer and Business Affairs (DCBA) revealed that Far West Restaurant Group had systematically underpaid its employees during this four-year period. The violation involved withholding anywhere from 25 cents to $2.25 per hour, despite the rise in the county’s minimum wage from $12 to $14.25 an hour for businesses with 26 or more employees.
DCBA Director Rafael Carbajal highlighted the impact of these wage discrepancies on employees, stating that individuals working 40 hours a week lost nearly $400 per month. Given that many of these workers were surviving on minimum wage, this amounted to a significant loss. Carbajal commended Far West for promptly addressing the issues at hand, although the company’s representatives were unavailable for comment.
The settlement reached with Far West amounts to $667,414.05, covering the alleged wage violations that occurred during the height of the COVID-19 pandemic. This sum includes $192,414.05 in back wages, fines totaling $288,621.00 to employees, and fines amounting to $186,379.00 imposed by the county.
The investigation was initiated when a Wingstop employee reached out to the department seeking clarification on the minimum wage in unincorporated LA County. The swift resolution of this case has been received positively by LA County Supervisor Holly J. Mitchell, who believes it demonstrates the county’s commitment to protecting working families. Likewise, County Supervisor Hilda L. Solis, whose district includes East LA, praised the settlement, emphasizing the need for fair and safe work environments where exploitation is eliminated and workers are supported, regardless of their immigration status.
As part of the settlement, affected employees will receive automatic disbursements in their paychecks. One worker is set to receive up to $17,000, which includes back wages and fines amounting to more than half of an average worker’s annual income at the minimum wage rate. Additionally, the Department of Consumer and Business Affairs is connecting these employees with various support services, including the Center for Financial Empowerment and the Office of Immigrant Affairs.
Former employees who worked at the two Wingstop locations in question are encouraged to contact the LA County Office of Labor Equity at [email protected] for more detailed information on the settlement.
Since July 1, the minimum wage for workers in unincorporated areas of LA County who work more than two hours a week has increased to $16.90 an hour. DCBA urges business owners in these areas to familiarize themselves with their rights and responsibilities and seek assistance to ensure compliance with minimum wage and other applicable ordinances. To reach out to the Office of Labor Equity, individuals can visit workers.lacounty.gov, email [email protected], or call 800-593-8222.
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