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Tina, Attorney
Category: California Employment Law
Satisfied Customers: 33167
Experience:  JD, 17 years experience & recognized by ABA for excellence in employment law.
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Hi, just bought a business last year and the dishwashers are

Resolved Question:

Hi, just bought a business last year and the dishwashers are getting pay cash and under minimum wage at $8.50. They have no social security to get pay in check and so I try to help them out the kept them , This year cafe caught in fire and they both lost their job, now I recieved a letter from the city saying that I have to send in all my records of all employees and payroll because someone file a complaint that I was paying under minimum wage. The busboys are not in my payroll and I have not kept records of their hours. How should I handle this? Thank You
Submitted: 5 years ago.
Category: California Employment Law
Expert:  Tina replied 5 years ago.
Hello and welcome,

I am sorry to hear of your difficult situation and am sorry to be the bearer of bad news.

Wage and hour laws are normally strictly enforced in CA and there are rather severe penalties for violating such laws, so I would expect to incur very significant expenses as a result of the violations unfortunately.

If you were not made aware of the violations until after you purchased the business, you may wish to consider suing the previous owner, depending on the language contained in the purchasing documents with regard to disclosures and assurances that were made.

You WILL need to retain a local attorney to represent the company and attempt to mitigate the penalties that will be assessed against you.

Here is a link to a website setting out the most common penalties assessed for such violations in CA:

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