Sacramento, California — The California Labor Commissioner’s Office (LCO) recently announced a nearly $1 million settlement to recover unpaid wages for 187 former Baked in the Sun employees. This Vista-based wholesale bakery shuttered abruptly, leaving its workers without compensation.
The settlement mandates payments exceeding $3 for every dollar initially owed to affected employees, providing substantial redress for unpaid wages and vacation time. The LCO’s initiative underscores California’s commitment to enforcing wage laws, particularly in cases where workers are left uncompensated following sudden business closures.
Labor Commissioner Lilia García-Brower stated that this case exemplifies the office’s vigorous enforcement strategy, ensuring accountability for those responsible and securing rightful compensation for workers. She emphasized that this enforcement action sends a strong message that withholding wages comes at a high cost.
The bakery’s financial distress led it to secure loans from various lenders, including HCAP Partners III, L.P., which assumed control shortly before Baked in the Sun ceased operations. The LCO cited HCAP and its restructuring officer, Gregg Yorkison, as jointly liable for unpaid wages. Additionally, First Choice Bank, which sold the company’s assets post-closure, faced legal action for not prioritizing final wages as required by California wage laws.
The LCO has begun distributing recovered funds to former Baked in the Sun employees in collaboration with the Bureau of Field Enforcement and the Judgment Enforcement Unit. Former employees who believe they are owed wages in this case should reach out to the LCO at 833-LCO-INFO (833-526-4636) for assistance.
