Oakland’s Radisson Hotel Owes Workers $400,000 in Wage Theft Case

A case against a large hotel chain in Oakland underscores the importance of hospitality workers understanding their rights regarding wages. Hotels rely on large staff teams to ensure smooth operations daily, including front desk managers, housekeepers, porters, waitstaff, and others. Unfortunately, employees are not always paid properly for all the hours they work.

The City of Oakland found that the Radisson Hotel engaged in wage theft, totaling over $400,000. The amount marks the largest determination of its kind in Oakland’s history, as well as the most workers involved in a wage theft case.

The Radisson Hotel, located near the Oakland Coliseum, underpaid 128 employees for 10 months. The employer failed to pay the correct minimum wage rates to its housekeepers and front desk staff, among other workers. They were collectively owed $404,491 for nearly a year’s worth of paychecks.

The City of Oakland’s Department of Workplace and Employment Standards (DWES) conducted a three-year investigation into the Radisson Hotel’s wage and hour practices. The wage theft occurred between July 2019 and April 2020, according to the DWES.

Hospitality staff who opted out of the Radisson Hotel’s health insurance should have been paid at least $20 per hour under Measure Z, also known as the Hotel Minimum Wage and Humane Workload Ordinance. However, the employer unlawfully paid them Oakland’s minimum $15 hourly rate intended only for workers who chose to receive health benefits.

Oakland officials conducted a thorough review of the hotel’s accounting records. They then sent its general manager a notice of determination letter outlining the Measure Z violations.

The Radisson Hotel now owes 128 workers $404,491 in back pay, which was required to be paid within 45 days of receiving the restitution determination. The exact amount each worker will receive has not been specified, but it could amount to $3,160 per person if evenly distributed. If the hotel fails to pay the owed wages, the Oakland City Attorney’s Office may file a lawsuit against the employer to ensure that the back pay is distributed.

The head of DWES said that the department has a backlog of around 20 similar wage-related investigations, and staff are working to resolve them as soon as possible. The Radisson Hotel case represents a small percentage of the workers who are affected by wage and hour violations or unlawful treatment from their employers.

Often, workers are hesitant to come forward out of fear of retaliation or lack of knowledge about wage and hour laws. Even in cities like Oakland that have progressive labor laws, employers may still engage in practices that exploit their workers.

Wage theft can occur in various ways, whether it is withholding tips and commissions or failing to provide workers with proper overtime pay. Hospitality workers may also be denied adequate meal breaks or rest breaks during their shifts. Additionally, they may unlawfully be forced to pay the costs of cleaning and maintaining their uniforms.

Hospitality staff should be paid fairly for all hours spent working. If you have experienced wage theft at work, you may feel like there is nothing you can do to get the pay you are owed. However, help is available. McCormack Law Firm is dedicated to providing quality legal representation to workers. We will help you recover your unpaid wages and hold your employer accountable for unlawful labor practices.

While California has a thriving hospitality industry that employs countless people, it can also be a hotbed for many illegal employment practices. Besides wage theft, workers may experience discrimination, sexual harassment, wrongful termination, and other violations. There are steps you can take to fight misconduct on the job.

Our experienced San Francisco employment attorneys are available to answer all your questions about workplace disputes. We will ensure you understand your rights as a worker and help you determine whether you have a claim against your employer. Contact us today for a free initial consultation to discuss your situation.