CARMICHAEL, Calif. — A Carmichael restaurant has been ordered to pay back wages to employees after the U.S. Department of Labor found employees were not properly paid for overtime.
The Labor Department said in a press release that the Lido Café and Bakery did not record all of the hours' employees worked and did not pay overtime, as is required by federal law.
"They either paid the cooks a salary with no overtime when they worked more than 40 hours in a workweek or paid overtime hours in cash at straight-time rates," the press release said.
The department recovered $81,577 in overtime backpay, $81,577 in damages for seven workers, and issued $4,067 in civil penalties against the restaurant that "willfully" violated Fair Labor Standards, according to its news release.
“Overtime pay violations are all too common in the restaurant industry, and the U.S. Department of Labor is committed to using all tools available – including litigation – against employers who violate the law willfully, hurt workers and their families, and take an unlawful advantage of their competitors that abide by the law," the press release said.
Owned by Shawna Rivera and her husband, Lido Cafe, formerly Lido Bar and Grill had been open in Carmichael for 30 years. Rivera said she had been paying a few employees cash, per their request to avoid taxed income.
"Sometimes you try to do a favor and you can’t do it — you gotta be by the book," she explained. "They were paid overtime, they weren’t paid time and a half. That's where I made a mistake, didn’t keep my timecards and I learned a very strict lesson."
She said she knew she was at fault, but felt picked on. Rivera added that the U.S. Labor Department could have been handled it less publicly.
"I love my employees, but it’s like, employers don’t have a lot of rights anymore," Rivera explained.
She said between the stress on her business from the pandemic and the negative comments and reviews she had seen on Yelp and social media since the Department of Labor had issued fines, she felt defeated and was not sure if she would keep her doors open much longer.
"I've loved every day of this journey," Rivera said. "I really didn’t want to end my career this way."
Customers who had heard about the labor violations said they would stand by their beloved restaurant and its owners.
"I read about it and I will support Shawna because she's a good person and I'm sure it will all get straightened out," explained Wendy Howard, a longtime Lido's customer. "I just hope she doesn't retire out because that would really be a detriment to the community."
The U.S. Department of Labor says workers can call the Wage and Hour Division confidentially with questions at 866-4US-WAGE (487-9243).
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