Federal investigation reveals Carmichael restaurant owes over $160K in unpaid overtime

Local News

CARMICHAEL, Calif. (KTXL) — Lido Café in Carmichael has been in business since 1994 and it’s clear it’s loved by locals.

But a recent investigation by the Department of Labor concluded the owner owes tens of thousands of dollars in overtime pay to her employees.

Shawna Rivera, who has owned the restaurant for nearly 30 years, said she was surprised by the department’s investigation.

“Something you’ve had for so many years, it’s hard,” Rivera said. “It’s really hard not to be emotional about it.”

While the Labor Department can’t disclose how the investigation into the café began, they said they’ve been looking into the restaurant since February of 2018, ending earlier this year.

“The employer failed to report all hours worked by employees and failed to pay overtime wages as required by federal law,” said Erica Escalante, a spokesperson with the Department of Labor.

That failure to keep track of work hours has Rivera owing over $163,000 in wages to her employees. Of that, $81,577 was found in back wages owed to employees and an additional $81,577 was found in liquidated damages also owed to employees.

It’s an oversight Rivera admits to.

“Not keeping my time cards — which I was unaware of — ended up costing me my whole PPP check,” Rivera said. “It’s just making it to the point where I need to sell my business.”

Still, she believes the Carmichael community will continue to support her.

“We care about it,” Rivera said. “My husband and I work really hard to keep things in check.”

The Labor Department said they are finished with the investigation and are not actively monitoring the restaurant.

For anyone who wants to file a complaint, they can call the Department of Labor at either 866-487-9243 or 916-978-6123.

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