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Supervisors approve $85,000 minimum-wage settlement; some members protest lack of penalties
Summary
The board authorized an $85,000 settlement with former owners of King Ting Tin Restaurant for alleged minimum-wage violations. Supporters praised enforcement work; at least one supervisor voted no, arguing the settlement's lack of penalties sends the wrong message.
San Francisco — The Board of Supervisors on Sept. 26, 2006 voted to authorize settlement of a lawsuit against former part owners of King Ting Tin Restaurant for $85,000 over alleged violations of the city's minimum-wage ordinance.
Supervisor Maxwell praised the Office of Labor Standards Enforcement and the City Attorney's Office for their work on the case and recognized the Chinese Progressive Association for partnering with the city. Maxwell said the settlement provides back wages to affected workers plus interest and noted that the State Department of Labor Standards, which partnered in the case, does not seek penalties; accordingly, penalties were not part of the negotiated settlement.
Supervisor Ellsberg (identified in the transcript as expressing dissent) said she would cast a negative vote because the absence of penalties in the settlement sent the wrong message. Ellsberg argued that even though the city had recently strengthened enforcement tools, pursuing penalties in an egregious case would be appropriate and would deter future violations. Maxwell responded that partnering with the state constrained seeking penalties in this particular case but that the city would seek penalties in other cases where it is not partnered with the state.
The board adopted the settlement and later recorded the adoption at roll call. The meeting transcript shows strong support for compensating workers while reflecting an explicit, recorded dissent over the decision not to pursue penalties in this case.
