March 3, 2025 | JacobiJournal.com – A Buena Park restaurant, Food Source LLC, faces more than $1.1 million in penalties after violating wage and sick leave laws, according to the California Labor Commissioner’s Office (LCO). The enforcement action includes citations and a lawsuit for unpaid wages, overtime violations, and failure to provide paid sick leave.
Breakdown of Violations and Penalties
Wage and Sick Leave Penalties: The Labor Commissioner’s Office (LCO) issued $532,561 in citations to compensate 73 affected workers for wage theft violations, including unpaid wages, overtime violations, liquidated damages, and incomplete wage statements.
Additionally, the LCO filed a $575,803 lawsuit seeking compensation for unpaid wages, damages, and penalties related to sick leave violations. The lawsuit claims that the employer denied workers access to paid sick leave, failed to document sick leave availability on pay stubs, kept workers uninformed about their legal rights, and did not provide supplemental paid sick leave during the COVID-19 pandemic.
Overall, these violations impacted at least 90 workers at the restaurant.
California Labor Commissioner’s Statement
Lilia García-Brower, California’s Labor Commissioner, emphasized the importance of workers’ rights, stating:
“Employees should not be forced to choose between their health and earning a livelihood. My office is committed to ensuring workers are properly paid for their labor and receive all the benefits they earn and rightfully deserve.”
Understanding California’s Paid Sick Leave Law
California’s Healthy Workplace, Healthy Families Act of 2014 ensures that employees working at least 30 days per year accrue one hour of paid sick leave for every 30 hours worked. Workers can use their sick leave after 90 days of employment, though employers may limit usage to 40 hours (five days) per year.
Unused sick leave carries over, capped at 80 hours (ten days). However, certain employees under collective bargaining agreements may be exempt.
For further details, check the California Labor Commissioner’s FAQs on sick leave here.
New Update: Buena Park Restaurant Faces Federal Wage Lawsuit as Court Orders Stronger Employee Timekeeping
The wage and sick leave enforcement case involving Buena Park restaurant operator Food Source LLC has expanded beyond the original California Labor Commissioner’s Office action announced in February 2025. In addition to facing more than $1.1 million in state citations and litigation demands, Food Source LLC was named as a defendant in a separate federal wage-and-hour lawsuit brought by the U.S. Department of Labor.
The federal action, filed in the U.S. District Court for the Central District of California under case number 8:25-cv-00711, alleges violations of the Fair Labor Standards Act involving employee compensation, overtime payments, tip practices, and payroll recordkeeping. The lawsuit also names several related business entities, including OBS USA Inc., K-Foods Investment Inc., JBC Source Inc., LLCB Source Inc., and LLCR Source Inc., along with individual defendants Christina Kyeonghee Kim and Robert Warren Daniels. Federal investigators alleged that the defendants failed to comply with requirements governing minimum wages, overtime compensation, employee tips, and accurate records of hours worked.
These allegations are separate from the California Labor Commissioner’s February 27, 2025 enforcement announcement, which identified $532,561 in citations affecting 73 workers and a $575,803 lawsuit concerning paid sick leave violations. Together, the state and federal proceedings demonstrate the substantial legal exposure employers may face when alleged payroll and employment law violations involve multiple workers and overlapping regulatory requirements. However, the federal lawsuit should not be interpreted as proof that every allegation has been established or that the state enforcement action has reached a final judgment.
A significant development occurred on March 25, 2026, when the federal district court issued a preliminary injunction addressing employee recordkeeping practices in the federal case. The order requires the defendants to implement and maintain procedures ensuring that employees, including chefs and cooks, accurately record their working hours through timecards or another appropriate timekeeping system.
The court also directed the defendants to provide workers with a notice explaining their federal employment rights and the existence of the Department of Labor’s lawsuit. The notice informs employees that federal law generally requires payment of applicable minimum wages, overtime compensation for qualifying hours worked beyond 40 in a workweek, and accurate records of working time. It also emphasizes protections against retaliation, intimidation, or interference when employees report wage concerns or cooperate with investigators.
The preliminary injunction represents an important procedural development because it establishes enforceable recordkeeping requirements while the underlying federal allegations remain subject to further litigation. It does not constitute a final determination that the defendants are liable for all claimed wage violations, nor does it establish the total amount of compensation that employees may ultimately recover. The Department of Labor’s lawsuit seeks relief involving wages and tips allegedly owed for work performed beginning in November 2022.
The federal proceedings therefore introduce additional issues beyond those addressed in California’s original sick leave enforcement action, particularly concerning the documentation of employee hours, payment of overtime, and protection of workers participating in wage investigations.
The original California enforcement action also remains important for understanding the broader allegations involving Food Source LLC. The Labor Commissioner’s Office announced that its investigation identified unpaid wages, overtime violations, unpaid contract wages, liquidated damages, and incomplete wage statements affecting 73 employees. Separately, the state filed a $575,803 lawsuit seeking compensation and penalties associated with alleged paid sick leave violations affecting a broader group of workers.
Those allegations included denying employees access to paid sick leave, failing to disclose available leave balances, neglecting required notices, and not providing supplemental paid sick leave during the COVID-19 pandemic. In total, California authorities reported that at least 90 workers were affected by the violations identified in the state proceedings. The subsequent federal lawsuit reinforces the importance of maintaining accurate payroll systems and complying with overlapping state and federal employment standards. California employers generally must provide eligible workers with at least 40 hours or five days of paid sick leave annually, subject to applicable statutory requirements and more protective local rules.
Employers must also maintain accurate records of hours worked, pay required overtime, provide legally compliant wage statements, and protect workers from retaliation when they exercise employment rights. For restaurant operators, these obligations require particular attention because variable schedules, tipped positions, split shifts, and high employee turnover can complicate payroll administration.
As of October 2026, the verified new development is the federal court’s March 2026 preliminary injunction involving Food Source LLC and related defendants. The available records do not establish a final resolution of the federal lawsuit or confirm that California’s original $1.1 million enforcement action has been fully paid or settled.
FAQs: About Buena Park Wage and Sick Leave Penalties
What are the Buena Park wage and sick leave penalties about?
The penalties involve more than $1.1 million in citations and lawsuits against Food Source LLC for unpaid wages, overtime violations, and sick leave law violations.
How many workers were impacted by the wage and sick leave penalties?
At least 90 employees were affected, with 73 receiving direct compensation through citations issued by the Labor Commissioner’s Office.
Why did the California Labor Commissioner pursue penalties?
The employer allegedly failed to pay wages, denied workers paid sick leave, and did not comply with state sick leave reporting requirements.
Where can workers learn more about Buena Park wage and sick leave penalties?
Workers can review official guidance and enforcement updates on sick leave laws through the California Department of Industrial Relations website.
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