Workforce

Cheesecake Factory cited in janitorial wage-theft lawsuit

The casual-dining chain and its cleaning subcontractor are being held liable for underpaying employees.
The Cheesecake Factory

The state of California has this week held The Cheesecake Factory and a cleaning services subcontractor liable in a $4.57 million case for underpaying 559 janitorial employees. The wage-theft investigation was initiated after the state labor commissioner’s office received a report from the Employee Rights Center in San Diego, an organization that assists nonunion employees. The janitors worked at eight of the chain’s Southern California restaurants in Orange and San Diego counties.

When asked for comment by Restaurant Business, Sidney Greathouse, Cheesecake Factory’s vice president of legal services, said in an email that “We take matters of this nature very seriously. We are continuing to review the allegations and will respond to the wage citation within the time provided.”

Cheesecake Factory contracts with Americlean, a janitorial services contractor, which subcontracted with Magic Touch Commercial Cleaning for the chain’s Southern California locations. All are being held liable for the wage theft.

According to investigators, janitors cleaning those locations began their shifts around midnight and worked for eight hours without adequate rest or meal breaks. Furthermore, they couldn’t leave the restaurants until Cheesecake Factory kitchen managers arrived in the morning to conduct walk-throughs. At that time, they could be tasked with additional duties and end up working up to 10 hours of unpaid overtime each week, said the labor commissioner’s report.

Members help make our journalism possible. Become a Restaurant Business member today and unlock exclusive benefits, including unlimited access to all of our content. Sign up here.

Multimedia

Exclusive Content

Marketing

Meet the restaurant industry's new government adversary

Reality Check: The FTC wants the business to change several longstanding operating conventions. Has it heard why that's a bad idea?

Financing

Why are so many restaurant chains filing for bankruptcy?

The Bottom Line: A combination of rising costs and weakening sales, and more expensive debt, has caused real problems for restaurant chains. But the industry is also really difficult.

Financing

Despite their complaints, customers keep flocking to Chipotle

The Bottom Line: The chain continued to be a juggernaut last quarter, with strong sales and traffic growth, despite frequent social media complaints about shrinkflation or other challenges.

Trending

More from our partners