San Fran Says Restaurants Pocketed Worker Health Care Fees

Law360, San Diego (January 28, 2013, 6:54 PM EST) -- The city of San Francisco on Friday announced an investigation into several dozens of restaurants that allegedly pocketed diner surcharges meant for funding employee health benefits, in violation of the city’s universal health care law.

City Attorney Dennis Herrera is giving offending restaurants until April 10 to distribute 50 percent of the unallocated health care surcharges they collected between 2009 and 2011 to employees who worked during that period or face consumer fraud litigation. He also said any amounts unredeemed by their employees must go toward...
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