Santa Clara County, California — A new California wage theft law is at the center of a lawsuit accusing local restaurant owners of failing to satisfy wage judgments owed to former employees. The case highlights new enforcement tools available when workers win unpaid-wage claims, but employers allegedly fail to pay the resulting judgments.
Santa Clara County Targets Unpaid Restaurant Wage Judgments
Santa Clara County filed suit against the owners of a Cupertino-area Taiwanese restaurant after wage judgments dating back to 2013 allegedly remained unpaid. County officials say seven cooks and kitchen workers were affected, with allegations involving long workdays, limited breaks, and irregular pay.
The California Labor Commissioner previously ordered Liang’s Kitchen Cupertino to address approximately $93,000 in unpaid obligations and penalties. According to the county’s complaint, the restaurant later closed, and operations continued at the same location under the name Liang’s Village.
County attorneys are now seeking more than $800,000 under California’s strengthened wage theft law, including penalties tied to the outstanding judgments. The defendants have not publicly responded to the allegations.
How California’s New Wage Judgment Rules Affect Employees
The lawsuit involves Senate Bill 261, which took effect on January 1, 2026. The law strengthens enforcement after a worker has obtained a final judgment for unpaid wages.
Under California Labor Code Section 238.05:
- A wage judgment unpaid for more than 180 days may trigger a civil penalty of up to three times the outstanding amount.
- Half of an assessed penalty generally goes to the affected employees, and the other half to state labor law enforcement.
- Successors to a judgment debtor may also face liability under specified circumstances.
- Labor Code Section 238.10 allows prevailing plaintiffs to recover reasonable attorney’s fees and costs in qualifying enforcement actions.
These provisions address the enforcement of unpaid judgments and do not replace workers’ underlying rights to minimum wage, overtime, meal periods, or other earned compensation.
Think Your Employer Owes You Wages? Learn Your Legal Options
Unpaid wages can create serious financial pressure, especially when overtime, minimum wages, or other compensation are consistently withheld. If your employer withheld wages or failed to comply with a wage judgment, a wage-and-hour attorney can explain your options under California law.
Labor Law Advocates represents California employees in workplace disputes. Contact us for a free consultation to discuss your wage claim, the evidence you have, and possible next steps.
