The Santa Clara County legal advisor’s office recently filed a lawsuit against a Taiwanese restaurant in Cupertino, accusing the business of failing to pay nearly $93,000 in owed wages to employees as ordered over a decade ago. The restaurant is also under scrutiny for purportedly evading legal responsibilities by dissolving the original company and establishing a new one. If the county government prevails in the case, the involved owners could potentially face debts, interest, and civil penalties totaling up to around $600,000.
According to a report by The Mercury News, the restaurant in question is Liang’s Village. The lawsuit has been filed in the Santa Clara County Superior Court under a new California law that allows for higher fines to be imposed on employers who delay payment of employee wages for more than six months.
The complaint states that as early as 2013, the California Labor Commissioner’s Office had ruled that Liang’s Village failed to pay overtime and minimum wages to several employees and did not provide complete wage statements as required by law. Following unsuccessful appeals, the Santa Clara County Superior Court subsequently issued a judgment of nearly $93,000.
However, the county alleges that the restaurant has not made payments over the years and has continued to operate.
In 2019, due to the outstanding wage judgment remaining unpaid, the California Labor Commissioner’s Office issued a stop-work order against the restaurant. Less than two weeks later, the owners closed the original restaurant-operating company, Liang’s Kitchen Cupertino, Inc., and established a new entity, JAJE Foods, Inc.
The lawsuit points out that the new company operates at the same location under the name Liang’s Village, with several Liang family members continuing to hold managerial positions. The restaurant even applied to renew its county food facility permit under the same menu using the original company’s name.
The county asserts that the new company is essentially a successor to the original one, and under California labor laws, it should still be liable for the prior wage judgment.
Santa Clara County legal advisor Tony LoPresti stated that businesses dissolving and re-registering with minor changes in the form of a new company to evade wage obligations and court judgments has long been a challenge in enforcing labor rights.
He likened this practice to a “sleight of hand,” with employees ultimately bearing the brunt of the consequences, particularly vulnerable workers already facing economic pressures.
Apart from Liang’s Village and related companies, the lawsuit also names co-owners Ivan Liang, Austin Liang, Jessica Liang, Erica Liang, and Janine Lee, as well as the restaurant’s deli service business operator, Liang’s Village – Liang Hsia Pan.
The county is seeking a court injunction to prevent further violations of labor laws by the business and to collect the original judgment, accumulated interest over the years, legal fees, and other civil penalties.
Under relevant state laws, certain amounts could be tripled. LoPresti mentioned that if the lawsuit succeeds, the defendants could potentially end up paying up to approximately $600,000, with the funds to be distributed among seven affected employees and the California Labor Commissioner’s Office.
LoPresti also noted that if a business continues to profit without fulfilling labor law obligations, it could potentially run afoul of California’s unfair competition laws.
He expressed hope that this lawsuit would send a clear message to other businesses that changing company names or legal structures does not absolve them of wage obligations and court judgment liabilities.