San Leandro Sushi Restaurant Cited for Wage Theft Over Stolen Tips and Unpaid Overtime

Wage theft is a common issue in California’s restaurant industry, where workers may be paid in cash, often rely on tips and work long or irregular hours. A recent investigation at Angry Fish Sushi in San Leandro revealed multiple labor law violations that directly impacted workers’ pay and legal protections.

The U.S. Department of Labor (DOL) found that Angry Fish Sushi failed to pay overtime to employees who worked more than 40 hours a week and were paid in cash. Investigators also discovered that the restaurant paid some workers a flat daily rate, regardless of the total hours worked.

These practices led to both unpaid overtime and minimum wage violations. The restaurant was ordered to pay over $43,000 in back wages and liquidated damages to 24 employees, along with more than $7,800 in penalties.

While a federal agency conducted the investigation, the violations directly mirror requirements under California law. Non-exempt employees must be paid one and a half times their regular rate of pay for hours worked over eight in a day or 40 in a week. Workers are also entitled to double time in certain situations. Paying a flat daily rate or compensating workers in cash without accurate time records does not excuse employers from these obligations.

In addition to unpaid wages, the investigation found that the restaurant’s owner and manager kept a portion of employees’ tips. The DOL described the practice as a “common restaurant industry violation.” California law is clear on this issue. Tips belong entirely to the worker who earned them. Employers, managers and supervisors are not allowed to take any portion of an employee’s tips, even in a tip pool arrangement. Violating this law can result in legal penalties and the requirement to repay the stolen tips.

Wage theft in the form of unpaid overtime, off-the-books pay and illegal tip practices continues to affect many Bay Area workers. This is particularly the case in industries where employees may feel pressured to stay silent or don’t have access to legal information. However, the law is on their side. California requires employers to keep detailed payroll records and to pay workers according to strict rules regarding minimum wage, overtime and tips.

Employers must maintain accurate records of hours worked and wages paid to workers. Failing to do so not only makes it easier for wage theft to occur but also makes it harder for workers to prove what they are owed. The Angry Fish Sushi workers who were paid in cash probably had no formal paystubs or timesheets, which makes proper recordkeeping even more essential.

Wage violations like those uncovered at Angry Fish Sushi are especially common in small, independently owned restaurants. Owners may assume that informal payment practices or off-the-books arrangements are acceptable, especially when staff are paid in cash. However, California labor laws apply regardless of a business’s size or structure. Employers are expected to maintain proper records and ensure workers receive all wages and tips they are entitled to; no exceptions.

If you are being paid in cash, required to work long hours without overtime or forced to give up your tips, you may be entitled to recover unpaid wages and penalties under California law. Whether you are a full-time or part-time worker, wage protections still apply.

Do you suspect your boss hasn’t been paying you fairly? You don’t have to figure it out alone. Oakland employment lawyer Jason Erlich of Erlich Law Firm is dedicated to helping workers understand their rights and pursue justice when employers break the law. If you believe your employer has violated your wage and hour rights, contact Erlich Law Firm today for a free and confidential consultation.