L.A. Fines Carl's Jr. $1.45 Million For Failing to Pay Workers

Carl's Jr. will have a few weeks to pay up after allegedly failing to pay some workers in Los Angeles. The company has been ordered to pay a $1.45 million penalty after the burger chain failed to pay 37 workers at seven locations what they were owed. 

John Reamer with L.A.'s Office of Wage Standards says workers deserve to be paid for their time.

"They worked. They showed up. They were on time. They did their job. They were not disciplined." 

The Office of Wage Standards alleges that Carl's Jr. failed to pay workers the minimum wage for Los Angeles, which is $10.50 an hour during the period between July 1st and Dec. 31st in 2016. Minimum wage in Los Angeles went up to $10.50 an hour from $10 on July 1st 2016 in the first step of a graduated increase to the $15-an-hour minimum wage in 2020. 

Carls Jr. says a payroll error kept their employees from being paid. At least $5,400 in wages went unpaid during the second half of last year. Carl's Jr., which is owned by CKE Restaurant Holdings, Inc., says the $1.5 million fine (which includes penalties and restitution) is unreasonable and that their workers have already been repaid. 

If it was just a mistake, they may want to start updating their payroll software now. The minimum wage in Los Angeles will be raised again to $12 per hour on July 1st, 2017. 

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