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Cheesecake Factory, Contractors Settle for $1M Over Underpaid Janitorial Staff

The California Labor Commissioner’s Office recently concluded a $1 million settlement involving Cheesecake Factory and two janitorial contracting firms for underpaying 589 janitors. In the settlement reached in October 2023, Cheesecake Factory agreed to pay $750,000 in back wages to the janitors, while Americlean Janitorial Services Corp. will pay $200,000, and Zully Villegas, operating as Magic Touch Commercial Cleaning, will pay $50,000. The resolution also includes a formal apology from Magic Touch to the workers and extended labour education for two additional years.

During a press conference on Jan. 23 in San Diego, California Labor Commissioner Lilla Garcia-Brower highlighted the state’s commitment to enforcement tools beyond mere legislation. She stressed the importance of supporting businesses involved in various services, including janitorial work, and urged them to ensure compliance with labour laws and fair wages.

Janitors who worked at Cheesecake Factory locations in San Diego and Orange County between Aug. 31, 2014, and Aug. 31, 2017, may be entitled to owed wages and damages under the settlement agreement, according to the Labor Commissioner’s Office. The investigation, initiated in December 2016 in response to complaints, revealed violations of wage and hour laws.

Workers, including Naxhili Perez, shared experiences of working long nights without proper breaks. Perez recounted starting shifts at midnight and working until morning without breaks, even having to stay longer if the manager found faults in their work.

The Maintenance Cooperation Trust Fund (MCTF) disclosed that Cheesecake Factory and its contractors have made disbursements, but efforts are ongoing to locate over 589 workers who have not received back pay. MCTF is using various channels, including social media, to reach out to eligible individuals.

Yardenna Aaron, Executive Director of MCTF, emphasized the exploitation faced by immigrant and female janitors due to irresponsible contractors undercutting wages. She highlighted the detrimental impact of such practices on responsible contractors and the prevalence of exploitation in the industry.

Despite inquiries, Cheesecake Factory did not respond regarding its procedures and due diligence before engaging in contracting services. The case underscores the importance of vigilance in ensuring fair treatment and wages for all workers, regardless of industry or contract agreements.

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