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Smashburger Settles $989K Wage & Break Lawsuit

Smashburger Settles $989K Wage & Break Lawsuit

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Sohini Chakraborty
October 31, 2025

Table of Contents

Case Background

In March 2022, a former hourly employee named Vijay Sheth initiated a class action lawsuit against the owners and operators of California Smashburger restaurants, including Icon Burger Acquisition LLC and its affiliates. The lawsuit represented thousands of non-exempt hourly employees, alleging that the company had systematically violated the California Labor Code from March 2018 to September 2024.

Cause

The central dispute was the systematic failure to provide timely and uninterrupted meal and rest breaks, leading to unpaid wages and penalties. The employees claimed they did not receive the legally required premium pay for missed breaks, and that the company had provided inaccurate final paychecks and defective wage statements. Ultimately, the lawsuit sought full compensation for all lost wages and substantial statutory penalties for these violations.

Injury

The core injury alleged was the systematic loss of earned wages, penalties, and compensation resulting from improper pay and scheduling practices. Employees claimed they were harmed because the company had denied them legally required pay and breaks. This included not providing timely and uninterrupted rest and meal periods as mandated by state law. Furthermore, the class members asserted they did not receive the legally required premium pay for any breaks that were missed or interrupted. Employees also claimed that the company’s policies had resulted in inaccurate final paychecks upon termination and wage statements that failed to properly reflect all compensation owed, including hours worked and break premiums.

Damages Sought

The Plaintiff’s legal team demanded significant compensation on behalf of the class. They sought full payment for all unpa

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Tags

Labor Code Violations
Wage And Hour Disputes
Meal Break Violation

About the Author

SC
Sohini Chakraborty
Editor
Sohini Chakraborty is a law graduate, with over two years of experience in legal research and analysis. She specializes in working closely with expert witnesses, offering critical support in preparing legal research and detailed case studies. She delivers well-structured legal summaries.