The Labor Commissioner’s Office (LCO) has recovered nearly $1 million in alleged unpaid wages for 187 workers from Baked in the Sun, a wholesale bakery in Vista, California. The bakery abruptly closed without notice, leaving employees unpaid for their hard-earned wages and vacation time.
After the closure, the LCO discovered that Baked in the Sun had financial troubles and had borrowed money from multiple lenders. One lender, HCAP Partners III, L.P., took control of the company before it shut down but failed to pay workers. Another lender, First Choice Bank, sold the bakery’s assets but didn’t use the proceeds to pay workers, as required by state law.
The LCO acted by filing a lawsuit and issuing wage citations. They held several parties accountable, including HCAP, First Choice Bank, restructuring officer Gregg Yorkison, and founder Rachel Shein. Their efforts resulted in settlements totaling $942,604.
This win ensures that workers will receive more than three dollars for every dollar they were owed.
Here is a link to the Department of Industrial Relations news release.