California Labor Commissioner’s Office reaches $1.7 million settlement in Wingstop wage theft case

NEWS RELEASE

WHAT YOU NEED TO KNOW: The Labor Commissioner's Office (LCO) reached a $1.7 million wage theft settlement benefiting approximately 550 workers. This announcement involved a scheme in which the owner of five Wingstop locations in Bakersfield created separate corporate entities to circumvent labor laws. The franchisee must now pay $5 for every $1 that was originally owed.

Sacramento-The LCO announced a settlement in the amount of $1.7 million in a wage theft case that impacts over 550 Wingstop employees in Kern County. This announcement follows a state investigation that uncovered a scheme in which a franchisee disguised the ownership of five Wingstop locations to deprive employees of wages, overtime, and meal breaks.

What Labor Commissioner Lilia García-Brower said: "This settlement demonstrates my office's commitment to exposing wage theft and holding violators accountable. Wage theft is a serious crime, and perpetrators will not evade the monetary consequences should they choose to violate the law. My office is committed to ensuring that workers are paid every cent they have earned and are entitled to."

HOW WE GOT HERE: The LCO began its investigation in November 2020 after receiving a Report of Labor Law Violation for one of the locations. The investigation revealed that, between 2019 and 2022, five Wingstop businesses were each operating as separate corporate entities, although one owner, Clinton Lewis, operated each site and shared employees between the multiple locations. By treating each location as a separate employer, Lewis was able to pay workers the lower minimum wage rate designated for smaller employers with 25 or fewer employees.

Employees scheduled to work at more than one Wingstop in one day were denied overtime pay when they worked more than eight hours in a workday or 40 hours in a workweek. Lewis avoided paying missed meal break premiums to staff when scheduling them at more than one location. Additionally, employees were not compensated for off-the-clock work during their time traveling from one location to another.

This settlement resolves the citations that covered minimum wage violations, contract wage violations, meal period premiums, liquidated damages, and waiting time penalties. Today's settlement is an update from an earlier announcement.

Employees who worked at the following Wingstop restaurant locations from June 9, 2019, and April 30, 2022, should immediately contact LCO at (661) 587-3070 as they may be entitled to owed wages and damages under the settlement agreement:

• 5628 Stockdale HWY, Bakersfield, CA 93309
  
• 4580 Coffee Rd B, Bakersfield, CA 93308
  
• 2600 Oswell St E, Bakersfield, CA 93306
  
• 1523 Panama Ln, Bakersfield, CA 93307
  
• 3800 Gosford 100, Bakersfield, CA 93309

The Labor Commissioner's Office in 2020 launched an interdisciplinary outreach campaign, "Reaching Every Californian." The campaign amplifies basic protections and builds pathways to vulnerable populations, providing critical information to workers and employers on legal protections and obligations, as well as the Labor Commissioner's enforcement procedures. Californians can follow the Labor Commissioner on Facebook and Twitter.

Media Contact: [email protected], (510) 286-1161

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