LSG Sky Chefs found in violation of Seattle’s minimum-wage law

After an almost-two-year investigation, LSG Sky Chefs, which has run an airline-catering facility in the West Seattle Triangle, has been found by the city to have violated the minimum-wage law. Here’s the announcement just sent out:

The Seattle Office of Labor Standards (OLS) found that LSG Sky Chefs violated Seattle’s Minimum Wage Ordinance, and has ordered the company to pay $210,213 in lost wages plus interest to 156 employees and $109,320 in liquidated damages. OLS also levied $15,500 in penalties for first time violations and failure to cooperate with its investigation. The total amount assessed was $335,033.

“This is a significant financial order,” said Dylan Orr, Director of OLS. “Many Sky Chefs workers can expect to receive the equivalent of two weeks’ pay as part of the final settlement, which will make a real difference in their lives. The City of Seattle is committed to holding large employers accountable to our labor standards laws, and ensuring that workers receive all of the money they have earned.”

Under terms of the final order, employees who were denied their full wages will receive shares of the $319,533 ordered based on their hours worked. Some employees will receive as much as $6,976; the mean amount will be approximately $1,936.

OLS also ordered Sky Chefs to pay 1.75 times the unpaid wages to employees for hours worked after January 16, 2016, when the City of Seattle increased the remedies and protections available to workers, including liquidated damages for up to twice the unpaid wages. OLS also assessed an additional $5,000 penalty against the company for impeding the investigation and approximately $100 per employee whose rights were violated on or after January 16, 2016.

The original complaint alleged that Sky Chefs failed to increase wages for its Seattle-based employees once the City’s new Minimum Wage Ordinance went into effect on April 1, 2015. OLS ordered the company to respond on April 23, 2015, but Sky Chefs chose to challenge the wage claim by arguing that it was exempt from Seattle’s Minimum Wage Ordinance under a provision of the federal Railway Labor Act. A delay in the investigation resulted when the assigned case investigator went on maternity leave and OLS transferred the case to another investigator; a delay of 2-3 months occurred when Sky Chefs changed its legal counsel. The investigation was further delayed when Sky Chefs released weekly payroll records for 165 employees to OLS investigators in a non-alphabetized stack of 14,000 individual pieces of paper, resulting in investigators’ spending 201 hours to calculate individual employees’ wages, shift differentials and overtime payments over a period of 4 months.

“Employees of Sky Chefs have waited a long time to receive what they’re owed, and I thank them for their patience as we pursued this long, complex investigation,” said Orr.

The Stranger reported on the investigation last year and said Sky Chefs had about 55 West Seattle employees. The company’s website currently shows its “Seattle” location as a site in SeaTac, but has a business license in Seattle city files for the Triangle site (4600 37th SW).

25 Replies to "LSG Sky Chefs found in violation of Seattle's minimum-wage law"

  • bolo January 4, 2017 (4:22 pm)

    Wonder if that is in the Stover’s catering building.

    I found this part amusing:

    “The investigation was further delayed when Sky Chefs released weekly payroll records for 165 employees to OLS investigators in a non-alphabetized stack of 14,000 individual pieces of paper, resulting in investigators’ spending 201 hours to calculate individual employees’ wages, shift differentials and overtime payments over a period of 4 months.”

    So I also wonder: Who paid for this 201 hours of work by the OLS investigators?

    • Diane January 4, 2017 (4:50 pm)

      yes, wondering the same thing

    • Peter January 4, 2017 (5:06 pm)

      When the police investigate a crime, do you question who pays the police? Workers deserve protection from scum like Sky Chefs. 

      • Diane January 4, 2017 (8:00 pm)

        I am thrilled this company is getting fined and held accountable; I think the company should also be required to pay for all those extra city hours that were directly caused by them playing ridiculous games with submitted paperwork; I am all in for the worker’s rights and stopping companies from stealing worker wages

      • bolo January 5, 2017 (11:43 am)

        No I don’t question who pays the police to investigate, Peter. As tax-paying citizens, ultimately you and I do. 201 hours is over 5 person-weeks! And I just wish there was some way to reimburse us for the investigators struggling thru what sure looks like a willful impediment to them doing their job.

    • dsa January 5, 2017 (1:44 am)

      It’s part of the fine.  Read the first paragraph again.  I bet they appeal that part.

  • Peter January 4, 2017 (5:04 pm)

    The penalties are way to low. Why aren’t there criminal charges? They stole more than $210K from their workers, that amount of theft warrants several years in prison for the managers and owners. 

    • Diane January 4, 2017 (8:01 pm)

      agree

    • RayWest January 5, 2017 (5:52 am)

      Agreed, and the owners should not get off lightly,  but the penalties also need to not put them out of business, which could result in the loss of many jobs.  It’s a difficult situation: punish the wrongdoers while protecting the workers future employment. 

    • Lisa January 6, 2017 (5:58 am)

      Peter – I hope you’re asking that of our president-elect. He’s stolen far more than that from us by not paying taxes.

  • Lola January 4, 2017 (5:10 pm)

    Bolo,

    Yes it is the old Stover’s Bldg.  I worked for them a while back and I believe that they would do this as well as create more work for someone else to have to look for something.  Does not surprise me one bit. 

    Hopefully LSG will have to pay for the 201 hours incurred by OLS investigators. 

    • Diane January 4, 2017 (8:02 pm)

      agree

    • bolo January 4, 2017 (10:36 pm)

      Thanks for confirming that Lola. I had heard bad things about that place. For years.

  • Dave January 4, 2017 (5:20 pm)

    I like it when people get nailed for breaking the law. Not enough accountability these days.

  • Jon January 4, 2017 (7:33 pm)

    Turning over paper records isn’t an original idea. Hilary Clinton gave the FBI 55,000 printed pages of her emails in 2015. 

    • dsa January 5, 2017 (1:48 am)

      I think it might be standard practice.  I was involved in something once and our state’s AAG told me to turn over *everything*, forcing them to sift through it, not us.

      • newnative January 5, 2017 (9:29 am)

        I can see the importance of a paper trail but you have to be either completely negligent or intentionally disorganized to hand over thousands of financial papers out of order.  I worked in administration in healthcare and we worked really hard every day to organize our paperwork so that any official could come in and ask for proof of anything and we could hand it over and they wouldn’t have trouble with timelines or proof that something happened.  

        • dsa January 5, 2017 (10:37 am)

          Our records were perfect too, but “any official” did not include the opposition attorney.

  • KBear January 4, 2017 (7:58 pm)

    Considering the prices of “meals” on Alaska Airlines, there should be no reason to short the workers. 

  • Jon January 5, 2017 (4:31 am)

    It’s not just companies like this who are abusive towards their workers; plenty of restaurants (especially the expensive trendy ones you see on every Top 10 Must Try list) you probably frequent are guilty of time theft and are in violation of pretty much every labor law. Many line cooks aren’t given any breaks, are denied tip sharing, and are even asked to work off the clock to “help the business”, et cetera.

    The really depressing thing is that the city mismanages their budget to such a point that there’s barely anyone available to enforce these violations, even when they are reported.
    • neighbor January 5, 2017 (9:08 am)

      One point of clarification to Jon’s post- he mentions that many line cooks are denied tip sharing. Tip sharing to line cooks and other back of the house employees is expressly prohibited under current law.

      This is why many restaurants have moved to a service charge, commission, or other no-tip model, because they can then distribute the service charge to both front of the house and back of the house employees legally.  This includes some of the “expensive trendy” ones, by the way.

      I agree that there are bad employers out there. But there are also a lot who do right by their employees.

  • Rick Sanchez January 5, 2017 (9:00 am)

    I’d to see this overturned on appeal, where you have a collective bargaining agreement and an employer covered under the RLA, it’s pretty likely that the city’s ordinance is preempted.  

    • dsa January 5, 2017 (10:41 am)

      What is the RLA?

      • bolo January 5, 2017 (11:56 am)

        federal Railway Labor Act

        From the 5th paragraph of the announcement above, at the top of the story:

        “…but Sky Chefs chose to challenge the wage claim by arguing that it was exempt from Seattle’s Minimum Wage Ordinance under a provision of the federal Railway Labor Act.”

      • Ron Swanson January 5, 2017 (11:58 am)

        The confusingly named railway labor act (expanded to cover airlines decades ago) sets out all sorts of uniform collective bargaining rules and the like for the carriers and their contractors.  To some extent, as federal law it preempts state and local laws on the same subject.  

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