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Grocery store sushi has become big business, generating an estimated $2.4 billion in annual sales in the deli section, according to areportfrom the National Fisheries Institute's (NFI) Sushi Council.
Unfortunately, a new lawsuit alleges that some of the companies preparing this sushi donothave good business practices.
Jeff Bezos backs a platform that lets anyone invest in rental homes for as little as $100 —here are 5 ways to build wealth like a landlord without actually being one Robert Kiyosaki saysthis 1 asset will surge 400% in a yearand begs investors not to miss this 'explosion' Millionaires under 43 hold only 25% of their wealth in stocks.Here's where their money is actually going The Office of Labor Standards and Enforcement for San Diego County filed suit in San Diego Superior Court against five separate grocery store sushi companies in June, and, asNBC San Diegoreported, the court filings included some pretty disturbing claims.
According toSF Gate, the defendants in the lawsuit include Ace Sushi Franchise Corp., Asiana Management Group Inc., Advanced Fresh Concepts Franchise Corp., FujiSan Franchising Corp., and Fuji Food Products Inc.
These companies offer grab-and-go sushi at supermarkets across the U.S., generating large profits for the stores.
Those actually making the sushi, however, may not be making very much money at all.
The lawsuit claims that the companies misclassified the sushi makers as independent contractor franchisees instead of as employees.
This enabled the companies to: Avoid labor laws that protect employees from exploitation Force workers to pay out of pocket for sushi robots, refrigerated displays, equipment, marketing fees, and franchisor services Require workers to purchase a minimum volume of food and packaging each month to avoid a fee, and potential termination of their franchise agreement Work extremely long hours, with sushi chefs routinely working 50 to 70 hours weekly, seven days a week "After deductions for equipment rental, raw food materials, financing installments, franchise fees, fines, and other charges, many franchisees are left with little to account for the long hours of work," the lawsuit states.
The lawsuit seeks damages for workers dealing with this situation, including unpaid wages for the workers, as well as attorney fees.
MoneyWise reached out to all five sushi companies for comment, with no response.
Don't Miss:Paying too much for car insurance? 3 clever (and free) ways to slash your bill today Classifying workers as employees typically triggers workplace benefits like guaranteed overtime, meal and rest breaks, and minimum wage protections.
But the aforementioned companies are calling people working for them franchisees instead.
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