The San Diego County Office of Labor Standards and Enforcement today filed the County’s first major lawsuit against several sushi franchise companies operating sushi counters inside grocery stores statewide alleging that businesses exploited sushi chefs through deceptive labor practices.

The lawsuit names Ace Sushi Franchise Corp., Asiana Management Group, Advanced Fresh Concepts Franchise Corp., Fujisan Franchising, and Fuji Food Products, companies that run branded sushi counters inside grocery stores around the state.

The action alleges the companies misclassified the sushi chefs doing the day-to-day work as “independent contractor franchisees,” when in reality, these workers had no meaningful independence at all. According to the lawsuit, nearly every major decision — from recipes and food quality to schedules, and production requirements — was dictated by the parent companies.

“This lawsuit is exactly the reason I coauthored the proposal to create the Office of Labor Standards and Enforcement. In San Diego County we will continue to advance fair labor standards with a commitment to workplace justice,” said San Diego County Board Chair Terra Lawson-Remer.  

At a news conference outside of the San Diego County Administration Center, San Diego County Board Chair Pro Tem Paloma Aguirre said the lawsuit reveals a deeply troubling scheme.  

“Today, San Diego County is taking an important step to protect workers, uphold the law, and ensure that businesses that play by the rules are not forced to compete on an uneven playing field with those that do not.  For many people, the dream of owning a business represents independence, opportunity, and a path to economic security,” said County Board Chair Pro Tem Paloma Aguirre. “This is especially true for the diverse working families of District 1, many of whom work multiple jobs or strive to start small businesses just to build a better future for their children.” 

Branden Butler, the director of the Office of Labor Standards and Enforcement investigating wage theft, workplace discrimination/harassment, and assists workers and employers across the region, this case involves worker exploitation hiding in plain sight. 

“We allege that these chefs were not running their own businesses. Nearly every major decision, from recipes and food quality to schedules, and production requirements, was dictated by the parent companies. Workers routinely worked long hours, met the companies’ requirements for keeping counters stocked, and kept operations running seven days a week, said Branden Butler, director of OLSE. 

Despite generating revenue for these companies, the lawsuit alleges workers had to pay for basic business expenses like equipment, ingredients, packaging, uniforms, transportation, and even losses from spoilage or theft.  

Alor Calderon, director of the Employee Rights Center said a brave worker called the center and complained about the working conditions and that is what started the lawsuit. 

 “The effect of this way of operating on workers and their families is devastating: on-going food insecurity, constant high levels of stress and depression, no time for doctors or family. In short, these so-called franchises completely de-humanize workers and their families and all of us end up suffering the consequences of their relentless cruel behavior,” said Alor Calderon, director of the ERC.