Wage theft of more than $400,000 from Oakland hotel workers is largest claim in city history
Staff who declined their employer’s health insurance were entitled to earn at least $20 per hour, but were instead illegally paid a $15 hourly rate.
OAKLAND — The results of a three-year city investigation unveiled on Friday revealed that 128 hotel workers were collectively underpaid $404,491 for nearly a year’s worth of paychecks — the largest wage theft finding in Oakland’s history.
The Radisson Hotel, located on Edes Avenue less than a mile south of the Oakland Coliseum, failed to pay the correct minimum wage rates to its housekeepers, front desk staff and other employees between July 2019 and April 2020, according to the city’s Department of Workplace and Employment Standards.
Specifically, hospitality staff who declined their employer’s health insurance were entitled to earn at least $20 per hour under Measure Z, which voters approved in 2018. However, the Radisson illegally paid the city’s minimum $15 hourly rate intended only for workers who opted into health benefits.
After a detailed inspection of accounting records, Oakland officials sent the hotel general manager, Tony Ng, a notice of determination letter Wednesday explaining these violations of Measure Z, also known as the Hotel Minimum Wage and Humane Workload Ordinance.
The Radisson is now on the hook to compensate the 128 underpaid workers and divvy up the $404,491 back pay within 45 days of receiving the restitution determination. While it’s unclear how much each hotel employee is entitled to receive, an even distribution of that sum would pay out $3,160 per worker.
Management at the Radisson Hotel has until Dec. 15 to appeal the ruling from the Department of Workplace and Employment Standards, which was established in 2020 as part of Measure Z to enforce the new rules. Additionally, the Oakland City Attorney’s Office may also initiate a civil lawsuit against the employer to ensure that back pay is distributed.
DWES Director Emylene Aspilla said there are roughly 20 similar investigations pending. While she said her staff is working to accelerate the timeline for these kinds of restitution investigations, she lauded worker rights advocacy groups for helping connect the dots in the meantime.
“Advocates know sometimes much more than we do at the city what is going on in the workplace,” Aspilla said at a press conference Friday. “They’re critical partners for us — often the eyes and ears for workers.”
One of the organizations that pushed for the department to be formed was the East Bay Alliance for a Sustainable Economy. Isaiah Toney, the deputy director of campaigns for the community group, said wage theft is the most common form of property crime in the United States.
“One of the reasons workers rarely get a shot at justice is the lack of enforcement agencies with the resources to ensure good business and labor practices are upheld,” Toney said “It is imperative that our city continues to invest in DWES to ensure the protection of Oakland’s workers.”
The management of the Oakland Radisson could not be reached for comment.
The second largest determination of wage theft occurred at the Holiday Inn & Suites on Hegenberger Road during 2019. Matt Berens, one of Oakland’s senior compliance officers, said that has since been resolved.
Yulisa Elenes, vice president for the UNITE HERE Local 2 union representing hotel workers in the North Bay and East Bay, said this week’s determination shows that the city is making good on its vision to tackle wage theft and inequitable working conditions, which she said still runs rampant in non-unionized workplaces, including Oakland’s Radisson Hotel.
“I hope that (the department) resolves the rest of the complaints in their backlogs as soon as possible,” Elenes said Friday. “I’m here to tell the bad bosses in Oakland that you’re on notice: if you violate workers rights, justice will be served.”