5 Hollywood restaurants accused of keeping service fee instead of distributing it to workers
City officials are also looking into allegations that two workers were fired after speaking out.
HOLLYWOOD (KABC) -- Five Hollywood restaurants are at the center of a city investigation for allegedly keeping a 5% service fee it charged customers instead of distributing it to workers.
According to the Los Angeles Times, the investigation launched by the L.A. city attorney's office involves some of the city's most celebrated restaurants including Mother Wolf, Ka'teen, Mes Amis, Bar Lis and the Terrace.
The city attorney is looking to see if Ten Five Hospitality - the group that operates the restaurants - violated an ordinance for allegedly keeping the entire fee.
City officials are also looking into allegations that two workers were fired after speaking out.
According to the L.A. Times report, no Ten Five Hospitality executives were made available for comment.
The report said a spokesperson did provide a prepared statement, saying: "The Wellness Fee, which is explained clearly on all customer bills, enables the company to provide an above-market employee package including a robust medical, dental & vision insurance program, 401(k) benefit offering and better working conditions for all employees."
The spokesperson declined to answer any other questions about the allegations.
