Press Release  Salem Restaurant Cited Nearly $40,000 for Wage and Hour Violations Including Failure to Pay Employees

Boston — A Salem restaurant has been cited nearly $40,000 in restitution and penalties for various wage and hour violations including violating the earned sick time law, failing to pay employees in a timely manner and for insufficient recordkeeping, Attorney General Maura Healey announced today.

The AG’s Office issued citations totaling $38,043 in restitution and penalties against BAI SHA Inc. d/b/a Koto Grill and Sushi and the company’s president, Yong Hui Liu, for failure to keep true and accurate records, failure to provide paystubs, failure to pay wages in a timely manner, and failure to comply with the Massachusetts Earned Sick Time Law.

“Too often we see vulnerable workers being exploited by employers who fail to play by the rules and steal money from their staff,” AG Healey said. “Our office is committed to protecting the economic security of residents, and we will work to ensure that workers are paid the wages they are owed.”

The AG’s Fair Labor Division began an investigation into Koto Grill and Sushi after receiving complaints from employees about non-payment of wages.

The AG’s investigation revealed that Liu allegedly violated the earned sick time law, which allows for workers to use earned sick time if they (or their child, spouse, parent, or spouse’s parent) are sick or injured or have a routine medical appointment. Employees were not aware of an earned sick time policy and did not know that earned sick time was available to them.

Liu also allegedly failed to pay workers for hours worked and failed to keep true and accurate timekeeping records.

The AG’s Fair Labor Division had previously cited Koto Grill and Sushi in 2016 for non-timely payment of wages.

Workers who believe that their rights have been violated in their workplace can also call the office’s Fair Labor Hotline at (617) 727-3465. More information about the state’s wage and hour laws is also available in multiple languages at www.mass.gov/ago/fairlabor.

This matter is being handled by Assistant Attorney General Kate Watkins and Investigator Lili Wu, both of AG Healey’s Fair Labor Division.

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