California Reaches $1M Settlement with Cheesecake Factory

A settlement of $1 million has been reached by the California Labor Commissioner’s Office in a case involving the Cheesecake Factory Restaurants Inc. and two janitorial contractors. The settlement is a result of allegations that 589 janitorial workers were underpaid.

An investigation was initiated in 2016 following complaints of potential wage and hour violations involving janitors responsible for cleaning Cheesecake Factory restaurants in San Diego County.

The workers were employed by Zully Villegas, doing business as Magic Touch Commercial Cleaning. They were contracted by Americlean Janitorial Services Corp., also known as Allied National Services, to work for Cheesecake Factory Restaurants Inc. In 2018, several entities were cited for various labor violations, including unpaid minimum wages, unpaid overtime, liquidated damages, waiting time penalties, and meal and rest period premiums. California Labor Code Section 2810.3 held all three entities responsible for their actions.

The three entities involved in the case have appealed the citations, and the matter has been resolved through a settlement before reaching the hearing stage. As part of the settlement agreement, contractors are required to disclose any previous wage claims when bidding for projects with Cheesecake Factory. Additionally, they are obligated to conduct annual wage and hour trainings for janitors. Cheesecake Factory has taken measures to ensure compliance with the law by conducting audits of their contractors and providing training to their managers and those responsible for overseeing janitorial contracts.

Janitors employed at various Cheesecake Factory locations in California are being urged to reach out to the Labor Commissioner’s office to determine if they are eligible for unpaid wages and compensation as part of a settlement. The affected time period spans from August 31, 2014 to August 31, 2017. Interested individuals can contact the office at (619) 767-2039 for further information.


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