San Diego County has filed a lawsuit against five grocery store sushi companies, alleging they exploited sushi chefs through a “misclassification scheme” to avoid paying fair wages.
The lawsuit, announced Juen 18, claims the companies labeled sushi chefs as independent contractor franchisees instead of employees, denying them minimum wages, paid sick leave, and other labor protections.
The lawsuit names Ace Sushi Franchise Corp., Asiana Management Group, Advanced Fresh Concepts Franchise Corp., FujiSan Franchising Corp., and Fuji Food Products, Inc. These companies are accused of controlling nearly every aspect of the chefs’ work, from store locations to pricing and operations. According to the complaint, the chefs were required to pay for their own equipment, including a sushi robot, and cover business expenses, leaving them with little earnings after long work hours.
Branden Butler, director of the county’s Office of Labor Standards and Enforcement, stated that the lawsuit aims to stop harmful practices and uphold fair labor standards. He said, “This case is about exploitation hiding in plain sight.” The lawsuit seeks restitution for unpaid wages, civil penalties, and other relief under California law.
The lawsuit follows an investigation by the county’s labor office, which found that sushi chefs often worked over 50 hours a week at single grocery store locations and more than 70 hours at multiple locations. Despite these demanding schedules, the chefs were denied basic employee rights, such as overtime pay and meal breaks.
The companies have not publicly responded to the allegations. The lawsuit reflects San Diego County’s commitment to enforcing labor standards and protecting vulnerable workers in the booming grocery store sushi market, where national sales exceed $2.5 billion.
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