California Labor Commissioner Recovers Nearly $1M in for Bakery Workers

The California Labor Commissioner’s Office reached a $942,604 settlement in a case involving a wholesale bakery in Vista that closed its doors without paying 187 workers.

Baked in the Sun shut down without paying its employees, resulting in workers not being paid for their wages or their vacation time, according to the LCO.

Under the settlement, workers will receive $3 for every $1 in wages they were initially due.

According to the LCO, when Baked in the Sun encountered financial difficulties, the company had to apply for loans from several lenders. One of the lenders, HCAP Partners III, L.P. eventually took control of the business, leading to the wages going unpaid.

The assets of the business were then seized by First Choice Bank shortly after the bakery closed and were sold to new owners, again leaving bakery employees unpaid.

State law requires employee wages to be paid for the last three months prior to business closure and asset sales. The LCO filed a lawsuit to recover the wages.

Following the filing of the case and the citations, the LCO reached settlements with most of the parties, including founder Rachel Shein, lender First Choice Bank, lender HCAP Partners III, L.P., and restructuring officer Gregg Yorkison.