SAN DIEGO — San Diego County’s Office of Labor Standards and Enforcement has filed a lawsuit against a group of companies that operate sushi counters inside grocery stores throughout California, alleging they exploited workers by misclassifying them as independent contractors.
The lawsuit, filed this week in San Diego Superior Court, alleges the companies classified sushi chefs working at the counters as “independent contractor franchisees” while maintaining significant control over how the businesses operated.
Named as defendants are Ace Sushi Franchise Corp., Asiana Management Group, Advanced Fresh Concepts Franchise Corp., Fujisan Franchising and Fuji Food Products.
According to the complaint, the alleged misclassification allowed the companies to avoid providing statutory worker protections, including state and local minimum wages, overtime pay, paid sick leave, workers’ compensation coverage, and meal and rest breaks. The lawsuit further alleges workers were required to cover business expenses such as transportation, equipment, ingredients and supplies.
“We allege that these chefs were not running their own businesses. Nearly every major decision, from recipes and food quality to schedules and production requirements, was dictated by the parent companies,” said Branden Butler, director of the Office of Labor Standards and Enforcement. “Workers routinely worked long hours, met the companies’ requirements for keeping counters stocked and kept operations running seven days a week.”
County officials said the lawsuit stemmed from a complaint filed by a worker with the Employee Rights Center, a nonprofit organization that advocates for workers’ rights, about working conditions.
“The effect of this way of operating on workers and their families is devastating: ongoing food insecurity, constant high levels of stress and depression, no time for doctors or family,” Employee Rights Center Director Alor Calderon said. “In short, these so-called franchises completely de-humanize workers and their families and all of us end up suffering the consequences of their relentless cruel behavior.”
The county is seeking relief on behalf of affected workers and enforcement of state and local labor laws.
