Radisson Hotel in Oakland Sued for Alleged Wage Theft of Over $400K: Key Takeaways for Workers

Fair wages are a fundamental right for California workers. However, unpaid wages continue to affect employees in the hospitality industry and other sectors. Wage theft occurs when employers illegally deny workers the pay that they have earned.

A recent high-profile case highlights how devastating wage theft can be for workers and the challenges many face in recovering the pay they are owed. The owners of the Radisson Hotel near Oakland Airport are facing a lawsuit brought by the city of Oakland. The lawsuit alleges that the hotel failed to pay more than $400,000 in wages to 128 employees.

The legal action stems from Oakland’s Measure Z, which requires hotels to pay workers a minimum wage of $15 per hour with health benefits or $20 per hour without health benefits. According to the city’s lawsuit, from July 2019 to April 2020, the hotel owners failed to pay employees the proper wages mandated by the ordinance.

Many hotel workers affected by the alleged wage theft were employed as housekeepers, front desk staff and other positions. Most were laid off after the pandemic hit. For workers grappling with job insecurity, the lack of proper pay has only worsened their situation.

The Radisson Hotel owners operate as Oakland Alameda Hotels LLC. In late 2023, the city of Oakland sent two letters to the hotel’s management urging the owners to address the wage theft claims or file an appeal. Otherwise, there would be significant consequences.

The letters went unanswered. The following notice warned that the city was about to take legal action. In June 2024, Oakland City Attorney Barbara Parker filed a lawsuit in Alameda County Superior Court, demanding that the Radisson Hotel pay back the $404,491.43 allegedly owed to the workers.

Parker also seeks a $1,000 fine and 10 percent interest for each worker, significantly increasing the amount owed to the employees. The total would be the largest payout in Oakland’s history.

For former hotel workers, the lawsuit represents a chance to recover their rightful earnings and get justice. An employee who worked in the hotel’s laundry department for three years explained that the Radisson had ignored repeated demands for payment. Speaking at a news conference, she hoped this lawsuit would finally force the hotel’s management to pay what they owe.

Workers in the hospitality industry are particularly vulnerable to wage theft. When companies violate labor laws, employees often bear the brunt of the harm. Workers have limited resources to fight back against employers, especially when they are large companies like the Radisson Hotel. As a result, seeking the help of an experienced employment lawyer who can protect your rights is crucial.

While this lawsuit progresses, it is essential to recognize that wage theft is not limited to one hotel or city. Workers may struggle with unpaid wages in various industries across the Bay Area and beyond. Additionally, wage and hour violations can occur in different ways. Some employers attempt to cut corners by withholding wages or denying proper overtime pay. Others refuse to provide meal breaks or force staff to perform off-the-clock work.

Contact the Employment Lawyers at Erlich Law Firm

At Erlich Law Firm, we are dedicated to helping workers who have been wronged by their employers. Wage theft can have lasting financial and emotional effects, but you don’t have to fight it alone. While we are not involved with the Radisson Hotel lawsuit, our Oakland employment lawyers are committed to holding employers accountable for unlawful practices. We have experience helping workers recover their hard-earned wages when employers refuse to pay them properly.

If you believe you have been a victim of wage theft or any other workplace violation, reach out to Erlich Law Firm today to discuss your case. Together, we can work toward securing the compensation you deserve and protecting your rights. Contact us for a free consultation.