Carl's Jr. faces minimum wage fines and restitution totaling $1.45 million in Los Angeles for reportedly failing the pay three dozen workers there the minimum wage for six months.
CKE Restaurants Holdings Inc., Carl's Jr. Tennessee-based parent company, called the fine and restitution "on its face simply unreasonable" and unconstitutional, according to the Los Angeles Times. The restaurant called the employee payment oversight "an inadvertent payroll error."
"Our employees have been made whole and we are willing to pay a reasonable fine for our mistake," CKE said on Tuesday, per CNBC. "However, given the excessive demands of the (City of Los Angeles' Office of Wage Standards), we have no choice but to defend against any OWS actions."
CKE said 37 employees affected were paid a total amount of $5,400, per the Times. Los Angeles City Attorney Mike Feuer said, though, that Carl's Jr. was to blame for the fine.
"L.A. law is clear: Employees must be paid at least the minimum wage," said Feur. "Anything less is a slap in the face to workers struggling to make ends meet. This is a major corporation that should know the rules."
"Our offices will always aggressively stand up for workers to ensure they get the wages they’re owed, and all the protections and benefits the law demands."
CKE's former chief executive, Andy Puzder, had been nominated earlier this year to become labor secretary in President Donald Trump's administration but withdrew his name in February in the face of stiff opposition from congressional members, unions and workers' rights advocates, said the Times.
Jason Marker replaced Puzder at CKE when he left the company in April. CKE also owns the fast-food restaurants Hardees, Green Burrito, and Red Burrito. The company has 3,800 outlets in 44 states and 40 foreign countries.
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