Bay Area Taqueria Fined and Ordered to Pay Workers $45K for Wage Violations

For many restaurant workers, long hours and physically demanding tasks are part of the job. However, some endure another layer of hardship when employers fail to pay legally required wages. Wage theft remains a common issue in the food service industry, where workers are often underpaid or denied overtime. A recent federal investigation into a Walnut Creek taqueria highlights how these violations occur and what employees can do to protect their rights. It resulted in more than $45,000 recovered in back pay and damages for affected workers.

The U.S. Department of Labor Wage and Hour Division found that Taqueria El Molino, a restaurant in the East Bay city of Walnut Creek, failed to pay proper overtime wages. According to the agency, the restaurant owner willfully paid overtime hours at straight-time rates and in cash rather than following federal wage laws. As a result, 14 employees were shorted on their pay.

Following the investigation, the Department of Labor recovered nearly $23,000 in unpaid overtime and minimum wages and an additional $23,000 in liquidated damages for the affected workers. The restaurant was also fined about $2,000 in civil penalties due to the “willful nature of the violations.”

A legal representative for Taqueria El Molino claimed the underpayments were due to an accounting error made by a former employee. According to a statement, the business has since implemented a new payroll system. Unfortunately, wage violations like these are not uncommon in the restaurant industry, and many employers that underpay employees only take corrective action once they are caught.

The Taqueria El Molino case is one of several recent federal investigations into labor violations at Bay Area restaurants. In early 2024, an Oakland-based Popeyes franchisee running locations in the East Bay was cited for around $212,000 in wage and child labor violations. Additionally, a group of former Lee’s Delis workers recovered almost $60,000 in back wages after bringing claims against their employer.

California law provides strong wage protections, including strict overtime regulations. Non-exempt employees must be paid time and a half for any hours worked beyond 40 in a workweek. Employers who fail to comply with these laws may be subject to penalties and required to compensate affected workers.

Despite such laws, many wage violations or unfair pay practices go unreported because restaurant workers fear retaliation or are unaware of their rights. Help and resources are available for workers seeking to recover unpaid wages. Additionally, employers are legally prohibited from retaliating against workers who assert their rights.

Wage theft can take many forms, from underpaying overtime to misclassifying employees as independent contractors. Workers who suspect they are being underpaid should document their hours and wages and report violations when possible. Contact an experienced employment lawyer who can advise you of your legal options.

For those facing wage theft or other workplace violations, legal action can be effective for recovering lost pay and holding employers accountable. At McCormack Law Firm, our skilled San Francisco employment lawyers help workers resolve all kinds of employment disputes. If you believe your employer has violated wage and hour laws, contact McCormack Law Firm to schedule a free initial consultation and learn about your legal options.