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Investigation Finds Rampant Wage Theft in Ann Arbor Restaurants

Some of the incidents were accidental, but many were malicious.


San Diego isn't the only city with a wage theft problem in its restaurant industry. An ongoing federal investigation into restaurants in Ann Arbor, Mich., has found that many workers have been underpaid, and it's resulted in more than $150,000 in back wages. Penalties have been announced for eight restaurants in the city, reports M Live.

Four of the restaurants randomly chosen to be investigated owed less than $1,000 in back wages. The worst offender, Gourmet Garden Chinese Food, owed its employees an appalling $116,000. Investigators reportedly determined the restaurant engaged in discriminatory and predatory practices.

The U.S. Department of Labor's investigation is part of an effort to protect workers in Midwest college towns. Similar investigations will reportedly look into the restaurant industries in Bloomington, Ind., and Ames, Iowa.

The wage theft issue comes at a time when many restaurant workers across the country are fighting for higher pay. Earlier this month, Minnesota restaurateurs proposed a cap on the state's tipped minimum wage.