California restaurant groups, 3–20 units

Before the notice arrives,
catch where the money leaks.Every week.

Keep the clock you already use. Drop a timesheet and, seconds later, see every premium owed, the law under each one, and what a notice would turn it into. Every fix lands in a dated, hashed ledger.

$15,405steps within 60 days · 30%
$0K–$0.00M
restaurant wage settlements
public cases 2023–2026
1/3
one third goes to plaintiff's counsel
every reported case
0
PAGA notices in the last year
filed with the LWDA · Jul 2025–Jun 2026 · tallied by Ankura
0
days to answer a pay-records request
LC 226(c) · the letter before the notice
Public cases

Restaurants with records and without them ended differently.

In 2026 Los Angeles Korean restaurants were sued in succession; the community press called it "effectively an emergency" (KNEWS LA). Insurance pays part of the defense and none of the settlement. Amounts below are from court orders and the Labor Commissioner; names are left out.

$2.25M
Sushi chain
10 units · Northern California
one ex-employee · $742K in fees
$700K
Sushi restaurant
Sacramento
a two-month employee · installments to 2027
$680K
Korean BBQ
LA Koreatown
48 workers · owner named personally
$475K
Mexican restaurant
San Bernardino
413 employees · settled Feb 2026
$252K
Steakhouse
Beverly Hills
478 members · rounding pleaded
$147.5K
Restaurant group
LA
150 employees · 3,200 pay periods
How it starts

Nearly every case above began with one person: one former employee, one who left after two months, one who walked into a worker center. An employer-side attorney's column describes a server with under a year's tenure who sued two Orange County Korean restaurants in a row (KNEWS LA). PAGA lets that one name claim for every employee, and the person filing is almost never a current employee. The Koreatown BBQ case was a 48-employee operation.

The ones with records
Won at trial
Hacienda Heights restaurant · 2024 jury
It had a time clock and ran payroll every two weeks. Fees still passed $100,000.
Settled for $15,000
a potential seven-figure claim · 2024
Written break policies, and premiums visible on the employees' own time records.

“Even when we're wronged we settle. The lawyers cost too much.”

a restaurant owner who won at trial, Korea Daily

“I'm really nervous about opening another business, and now I'm nervous about all the other businesses.”

a Sacramento restaurant owner after a $700K settlement, Abridged

Sources: court final-approval orders, DIR press releases, Abridged, Hoodline, CABIA, KNEWS LA, Korea Daily, World Journal, O'Hagan Meyer. Names and details on request.

The discount the statute wrote down

Employers who can show their records pay less.

Labor Code 2699 as amended in 2024. Four "reasonable steps" taken before a notice cap penalties at 15%; within 60 days after, 30%; with a cure, $0. The condition: the employer proves the steps were taken.

1
Payroll auditrun periodically, acted on
2
Written policiesdistributed, receipts signed
3
Supervisor trainingin Korean and Spanish, logged
4
Corrective actionwith supervisors who repeat

Fifth Hour's ledger records these four with dates and hashes. The arithmetic transcribes the statute; it is not a prediction. Class claims are separate.

$286K
statutory maximum
110 employees · biweekly · one year · one theory
$86K
steps within 60 days
30% · LC 2699(h)
$43K
steps before the notice
15% · LC 2699(g)(1)
$0
steps + cure
LC 2699(j)
How it works

Scan, fix weekly, keep the ledger.

01

One timesheet is enough to start

A 7shifts, Toast, Square, Deputy or Homebase export, or any CSV. Twenty-one rules run; one screen shows premiums owed, the law behind each, a week-by-location map, and what a notice would turn it into.

02

Thirty seconds, in the employee's language

On a day a meal ran late, one text. No login; the employee answers taken / I chose to skip it / work prevented it, and the answer lands in the ledger as given. Voluntary closes it; otherwise the premium goes to payroll.

03

When the letter comes, a 60-day record

Photograph the notice: sections, theories and deadlines are read, and the same account becomes days-left, a checklist, a binder by theory and read-only access for counsel. The ledger is a hash chain; no line can be edited.

What is different

Your clock says a break was missed. We look at what happens next.

7shifts · Toast · Homebase

Clock

Tells you a break was missed, then stops. Never sees the pay stub.

Gusto · ADP · Toast Payroll

Payroll

Has a premium code but never sees the break record.

thousands per audit

Law-firm audit

Precise, once. The months in between are empty.

every pay period

Fifth Hour

Cross-checks breaks against stubs and builds evidence weekly.

ClockPayrollLaw firmFifth Hour
Detects meal and rest exceptions✓–✓✓
Checks the premium reached the stub––✓✓
At the regular rate, bonuses included––✓✓
Collects clock-out attestations✓––✓
Evidence quality: rounding, waiver rates––✓✓
21/30-day records-request countdown–––✓
Hashed ledger + 60-day notice binder–––✓
Every pay period, Korean and Spanish–––✓

Vendor documentation as of 2026-11-01. You keep your clock and payroll; this sits on top.

10 restaurant groupsLA · Orange CountyOnboarding Nov–Dec 2026
Pilot · cohort 1

The first 90 days. Ten restaurant groups in LA and Orange County.

$400per location · month

$13 a day · less than one missed-meal premium (an hour of pay)

Onboarding $1,200 + $300 per location, onceone location $1,500, five locations $2,700. A five-unit group pays about $8,700 over 90 daysPaper timesheets, or more than one payroll provider, are quoted separately. Up to three cohort-1 groups that agree to a public case study get the onboarding fee credited against monthly fees.
  • Weekly exception report and premium reconciliation
  • Employee attestations by text, three languages
  • Signed policies and supervisor-training log
  • Records-request response log
  • Notice mode and the binder
  • Built to work alongside your employment counsel

$2,300 per location · every pay periodwhat one location leaks in premiums in the sample file. Set that against $400 a month.

Month to month after 90 days. The ledger and binder exports are yours at any time. hello@fifthhour.co

Bought separately
Wage-and-hour audit by a consultant$3,000–8,000 · onceweekly, included
7shifts Pro attestation tier$79.99 · location · monthno premium math, no binder
Compliance-firm retainer after a settlement$40,000 a year · one owner's accountincluded
Counsel after the notice arrivespublic settlements $150K–2.25Mnotice mode and the binder, included
The 90-day math
$8,700a five-unit group, 90 days
$150,000smallest settlement in the public cases · about 17× the pilot
$50,000of that goes to plaintiffs' counsel (one third)

In week one we sit down with each group's employment counsel to set it up. That is why cohort 1 stops at ten; after that, the cohort-2 waitlist.

Price sources: consultant audit range from a California HR consultant's public rate card; 7shifts from its Nov 2026 pricing page; the retainer from a San Diego owner's public account; settlements from public cases.

What we do not promise

We never say "violation"

Exception, evidence present or missing, premium queued. Legal conclusions belong to counsel.

We do not sell immunity

Notices can still arrive. What we make is the record you hand your lawyer that day.

Numbers come only from your data

Exposure is statutory arithmetic, never a prediction.

Keys are never stored

Clock API credentials live only in the server environment. Originals are kept write-once with their hashes.

One timesheet. See it today.

Look around the sample first. Your file changes nothing until you accept.