LOS ANGELES (CBSLA.com) —The city of Los Angeles has filed a lawsuit accusing Carl’s Jr. of paying some of its employees under minimum wage.
The lawsuit is seeking more than a $1.4 million fine from the fast food chain because it allegedly did not pay 37 workers the accurate wage.
The California minimum wage was increased to $10.50 per hour on January 1, 2017 for businesses with 26 or more employees.
City Attorney Mike Feuer says it happened at seven different Carl’s Jr. locations in the city.
Carl’s Jr. released a statement saying that it made an inadvertent payroll error and that all employees have since been paid.
A spokesperson for the burger chain also called the fine unreasonable and unconstitutional because some of the fine would not go to the employees.