San Francisco Karaoke Bar Accused of Taking Tips and Retaliating Against Staff

San Francisco’s nightlife thrives on bars, clubs and entertainment venues that attract both locals and tourists. However, behind the scenes, workers in the hospitality industry often face challenges that go unnoticed by patrons. Recent lawsuits filed by two former employees of Pandora Karaoke & Bar, a well-known karaoke lounge near Union Square, highlight some of these labor law violations. The lawsuits accused the business of committing wage theft, denying breaks and retaliating against workers who spoke up about these issues.

The lawsuits were filed in San Francisco County Superior Court. They alleged that Pandora Karaoke Inc. and its owner, Timmy Choy, failed to pay overtime wages, manipulated employee timesheets and required staff members to share tips with management. Plaintiffs Kimmy Dao and Ares Mora-Love claimed they were fired after voicing concerns about these unlawful employment practices. Dao worked as a server at Pandora Karaoke from 2010 to 2023, while Mora-Love was a barback until December 2023.

One of the most striking claims in the lawsuits is that Pandora Karaoke allegedly required servers and bartenders to turn over a percentage of their tips to the owner and managers. In California, tips belong solely to the employees who earn them, and any attempt by an employer or manager to take a portion of those gratuities is illegal.

The lawsuits stated that the “house” took a percentage from all tips earned by staff, while the manager allegedly took an additional 15 percent from every tip. For many service workers, tips make up a significant part of their income, and having a portion unlawfully taken away can create financial hardship.

In addition to tip theft, the lawsuits claimed Pandora Karaoke engaged in wage theft by adjusting employee timesheets. Dao and Mora-Love alleged the employer altered their hours to avoid paying them for all hours worked, particularly overtime.

California law requires that non-exempt employees be paid time-and-a-half for any hours worked beyond eight in a day or 40 in a week. If an employer manipulates records to make it seem like employees worked fewer hours than they actually did, it not only results in lost wages but also deprives workers of the full and fair compensation they have earned.

Another key labor law violation highlighted in the lawsuits is Pandora Karaoke’s failure to provide rest and meal breaks. Workers must receive a 30-minute unpaid meal break if they work more than five hours in a shift and 10-minute paid rest breaks for every four hours worked. When workers are denied these breaks, they are entitled to additional pay, commonly known as premium pay.

Worker exploitation and wage theft in the service industry often go unreported due to fear of retaliation. Workers are scared of losing their jobs for speaking up about unlawful treatment. Both Dao and Mora-Love claimed they were fired after bringing up complaints about unpaid wages and improper tip deductions. The lawsuits stated that they voiced concerns to management verbally and in writing, along with discussing the issues with other employees.

Retaliation like this is illegal under California law, which prohibits employers from terminating or punishing workers who request to be paid their owed wages. Unfortunately, retaliation is a common tactic used to intimidate employees and discourage them from taking legal action.

The plaintiffs are seeking $250,000 in damages for their lost wages and the unlawful practices they endured. While this case involves Pandora Karaoke, similar labor violations occur frequently at other workplaces in the hospitality industry. Service workers, particularly those reliant on tips, are often vulnerable to wage theft, whether through improper tip pooling, misclassification or unpaid overtime.

If you believe your employer has failed to pay you properly or retaliated against you for speaking up, you do not have to face the situation alone. McCormack Law Firm helps workers recover lost wages and fight for their rights. While we are not involved with the Pandora Karaoke lawsuit, our skilled San Francisco employment lawyers can assist you with your workplace dispute. Contact us today for a free initial consultation.