It has been an expensive year for Patio Restaurant, the iconic California-themed restaurant on the corner of Hollywood Boulevard and Beverly Boulevard.
Patio closed on December 1 and, for good measure, became the subject of a $200 million lawsuit from the Culinary Workers Union.
The union alleged that Patio had a “failure of good faith” and “an abject disregard” for its employees and customers.
It alleged that the restaurant failed to provide the minimum wage required under the California Fair Labor Standards Act, that it was not properly franchised, and that it had not complied with California Labor Code requirements.
It also alleged that its managers, who were not employees of the restaurant, did not have proper training in the hospitality industry.
“It is a very high bar for the Culinaires franchisee to come into the restaurant,” said Mark DeLeon, the union’s president.
In a statement, Patio said it was “extremely disappointed” by the allegations. “
I think it is unfair and they should not continue to operate the restaurant.”
In a statement, Patio said it was “extremely disappointed” by the allegations.
“While we are currently reviewing the case, we fully expect our employees to be paid what they are owed,” the statement read.
The Culinary Union also said that it is “disappointed” in Patio’s management. “
The franchisee, the Culineers union, and the California Labor Commission will continue to work together to ensure that the restaurants that have been established in this state of the Union serve our customers with integrity and compassion.”
The Culinary Union also said that it is “disappointed” in Patio’s management.
“There are no questions about their ability to pay their employees the minimum required wage under the law,” said Chris Daugherty, the president of the Culinity Culinary union.
“If they fail to comply, we will seek legal remedies against them.”
The Los Angeles Times reported in September that Patios owner, Michael R. Schoenfeld, was also the owner of a chain of upscale restaurant in Orange County, where he is also the chairman of the board of directors.
“We don’t see it as the right place to be,” Daugher said of Patio.
“And that’s unfortunate.”
A Patio spokesman told Newsweek that the chain has always strived to make its food and hospitality menu accessible to the widest possible audience.
“In a city where more than 90 percent of the population is foreign-born, it is important to serve our community,” the spokesman said.
“This is not a place for people to feel unwelcome.”
A spokesperson for the Los Angeles County Board of Supervisors, which has jurisdiction over Patios, said the board had not yet taken a position on the case.
“Our staff is constantly looking at how to improve the restaurant’s food and service and that includes a thorough review of all the facts and circumstances of the case,” the spokesperson said.
In a previous interview with the Los, Angeles Times, Schoenfield said he was concerned about the restaurant “getting into a position where it could be in violation of the law.”
The complaint, filed in January, alleged that “at the outset, Patios’ managers knew that Paties workers were paid less than the minimum amount of wages that were required under California law,” and that “these misrepresentations were part of a concerted effort to ensure Patios would not be in compliance with the law, including the minimum wages required under federal law.”
According to the complaint, Paties management also “misrepresented to Paties employees that the employees would not receive any overtime compensation and that employees would be compensated for overtime by the restaurant in the form of food stamps and other benefits,” while “the restaurant did not pay for overtime.”
The lawsuit also claimed that Patients management “failed to adequately monitor and train its employees on the minimum hourly wage requirements under federal and California labor law.”
Patio also has a history of legal problems, including a 2009 lawsuit by a former employee that alleged that it “repeatedly and systematically failed to pay wages owed by Patios employees, despite the fact that Patios was required to do so by law.”
A 2013 Los Angeles Magazine article said that the company “had a reputation for not paying wages to its employees, and it was often the case that Patis workers did not receive the minimum compensation they were owed.”
“Patios’ reputation for being a bad employer also led to a lot of legal trouble in Los Angeles,” the article said.
The company’s owners declined to comment.
The Culineer’s union said that Patrios’ problems were compounded by a number of other factors, including “the fact that the Culinateers union is affiliated with a restaurant union in San Diego.”
“The Culineeros union is not involved in any legal action against Patios,” the Culination Union’s spokesperson said, adding that