Sacramento, CA – In a major win for labor rights, the California Labor Commissioner’s Office (LCO) secured $942,604 in settlements to pay back wages to 187 former employees of Baked in the Sun, a Vista-based bakery that abruptly closed, leaving workers unpaid. Each worker will now receive over $3 for every $1 originally owed, a significant victory for employee rights.
California Labor Commissioner’s Aggressive Approach Proves Effective in Securing Worker Compensation
Labor Commissioner Lilia García-Brower emphasized that the LCO’s robust enforcement actions against multiple parties were essential to achieving this successful outcome. “This case demonstrates our team’s aggressive litigation strategy in pursuing enforcement actions against all liable parties, ultimately leading to the identification of assets that might otherwise have gone undetected. Clearly, robbing workers of their wages has proven to be a costly crime,” she said.
Understanding California Labor Law: Financial Troubles and Accountability
Baked in the Sun’s financial issues led it to seek loans from various lenders. Shortly before its closure, HCAP Partners III, L.P., a lender, took control of the bakery. As a result, the LCO held this lender and its restructuring officer, Gregg Yorkison, accountable for unpaid wages, issuing a wage citation.
Following the bakery’s closure, another lender, First Choice Bank, seized the company’s assets and sold them to new owners. However, the bank failed to prioritize employee wages, as required by California labor law. Specifically, this law mandates that a business must pay the final three months of wages first. Consequently, the LCO filed a lawsuit to recover these wages for the bakery’s former employees, ensuring they ultimately received the compensation they were owed. Furthermore, this legal action highlights the LCO’s commitment to protecting workers’ rights in California.
Settlement Reached and Wages Distributed
After a lengthy process, the LCO reached settlements with parties including Baked in the Sun founder Rachel Shein, HCAP Partners III, L.P., First Choice Bank, and Gregg Yorkison. The LCO’s Bureau of Field Enforcement (BOFE) and Judgment Enforcement Unit (JEU) worked together to ensure workers received their unpaid wages.
Distribution of back pay to Baked in the Sun’s former employees has begun. Workers who believe they are owed wages can contact the LCO at 833-LCO-INFO (833-526-4636).
California Labor Commissioner’s Office Extends Outreach with “Reaching Every Californian” Campaign
This case underscores the LCO’s broader mission to protect workers’ rights in California. In 2020, the “Reaching Every Californian” campaign launched to raise awareness of basic worker protections and provide resources to vulnerable populations. This initiative continues to provide crucial information on legal rights and obligations, reinforcing the LCO’s labor enforcement efforts.
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