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Pizza Hut workers in L.A.'s Historic Filipinotown go on 3-day strike, alleging wage theft

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Pizza Hut workers in L.A.'s Historic Filipinotown go on 3-day strike, alleging wage theft

At a Pizza Hut restaurant in Historic Filipinotown, west of downtown Los Angeles, a slip of paper was taped Wednesday to the glass storefront announcing “STORE CLOSED” and “EMPLOYEES ON STRIKE.”

A handful of workers rallied outside with organizers from a new union for California fast-food workers to protest what they allege is ongoing wage theft by the Pizza Hut franchise owner.

Six current and former workers are staging a three-day strike to bring attention to their cause, and with help from the new union, five of them filed a complaint with the state labor commissioner’s office Wednesday alleging that store management skimmed hours from their paychecks, required training and overtime work while refusing to pay for it, and declined to pay for sick leave — amounting to some $81,443 in back pay and penalties.

Julieta Garcia goes on a three-day strike to protest alleged wage theft at a Pizza Hut in L.A.’s Historic Filipinotown, west of downtown.

(Dania Maxwell / Los Angeles Times)

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The complaint also alleges store management enforced “abusive and chaotic scheduling,” with changes to workers’ schedules multiple times a week; workers at times have been sent home at the beginning of their shifts without prior notification or pay.

“Management is subjecting us to nearly every form of wage theft,” the complaint reads.

The Pizza Hut store’s management did not respond to a phone call requesting comment.

Although the number of workers involved in the labor action is small, the accusations of wage theft illustrate a pervasive problem in restaurant and other low-wage industries, labor advocates say.

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Forms of wage theft can include violations such as failure to pay for all hours worked, paying workers less than minimum wage, refusing to pay overtime, denying workers meal breaks or rest periods, and requiring employees to finish tasks before or after their shifts. The Economic Policy Institute said in 2014 that wage theft costs American workers as much as $50 billion a year.

The strike comes as part of a broader push from the newly formed California Fast Food Worker Union for improved work standards as well as predictable and stable scheduling for workers.

The union, inaugurated early last month, is a unique effort that seeks to pave the way for more than half a million workers at fast-food chains across the state to bargain as a single sector as a member of California’s Fast Food Council.

Problems have plagued the Pizza Hut on Temple Street since a new store manager took over about six months ago. The franchisee that owns the location announced the day before Christmas that it would be laying off delivery drivers, said workers and union representatives. Workers protested the layoffs and what they describe as abusive scheduling during a one-day strike on Jan. 26.

Shwetha Ganesh, a spokesperson for the union, said when two Pizza Hut franchisees in California announced they were laying off delivery drivers and would rely on gig delivery services, analysts blamed the layoffs on the new $20 pay floor. But Pizza Hut began working with those services more than a year ago — not to save money but because management could not hire enough drivers, she said.

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Three workers who walked off the job in the most recent strike Wednesday said they were intimidated by bosses to not take lunch breaks or cash in on time off. Two said their hours had been cut in retaliation for speaking out about their concerns.

Store management recently hired three new employees, even though current employees aren’t getting enough hours scheduled to pay their bills, workers said. The store has about a dozen workers total.

Pizza Hut workers and their supporters begin a three-day strike by marching.

(Dania Maxwell / Los Angeles Times)

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“We’re on strike because we are asserting our rights. We want to get paid, and we want our old schedules back,” said Kimberly Oliva, 20, who has worked as a cook at the Pizza Hut for about a year.

Oliva said she used to be scheduled about 46 hours per week; now, she gets only 16. The dramatic cut in hours has strained her wallet. She has been forced to borrow thousands of dollars from her aunt and uncle.

Oliva lives with her dad and two siblings, and helps pay for rent, food, gas, clothing and car insurance as well as sending money regularly to her mom in Guatemala.

Oliva said the loss of income and antagonistic attitude from the store manager have taken a toll. Last week, when Oliva asked for time off because her grandma had died, her manager shut her down, threatening to lay her off, she said.

“I’m very worried, I’m sick, I’m stressed. My nerves are really tense to the point where I have eye problems,” she said. “I have never felt so sick.”

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Julieta Garcia, a cook at the Pizza Hut who participated in the protest, said in her statement to the labor commissioner’s office that she had to miss work Dec. 3 and 4 after going to the emergency room for a muscular lesion, and requested paid sick time. But a shift manager told her the store manager said paid sick time was not yet available to Garcia.

Garcia said in her written statement that she realized she had been lied to when she spoke with organizers with the California Fast Food Workers Union who told her she is legally entitled to paid sick time after being employed for 90 days; at that point she had been working at Pizza Hut for some seven months.

Garcia said in an interview that stress at work and heavier workloads have aggravated her health issues. She had to visit the emergency room again in February because she was experiencing severe headaches, and she was once again denied paid sick time. In addition to her responsibilities as a cook, she is now also expected to sweep, mop and wash dishes — all duties that delivery drivers used to take care of, she said.

“I feel stress, I feel headaches, I get migraines — I need my paid time off,” Garcia said.

Ganesh, the union spokesperson, said problems Garcia and other Pizza Hut workers are facing are widespread in the fast-food industry. Ganesh pointed to a report published by the union on Wednesday finding that 88% of California fast-food workers do not know their rights on the job and broadly lack information about essential benefits and programs.

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The report, co-authored by the Step Forward Foundation, an immigrant advocacy group providing free legal services, also found that 73% of California fast-food workers do not know how much additional pay they are entitled to if they are forced to work through a meal break or rest breaks.

The union has called on local officials in Los Angeles and San Jose to draft and approve “fast-food fair work ordinances” securing paid time off provisions, predictive scheduling tools and mandatory “know your rights” training for workers.

Daniela Soto, a shift manager at the Pizza Hut who opened the store Wednesday morning, was working when workers and Service Employees International Union organizers gathered outside for a noon protest.

Soto hadn’t originally planned to participate in the strike, but she closed the store to show solidarity and joined the protest. Staff from a nearby Pizza Hut location arrived about 30 minutes later to reopen the store, she said.

“I am upset about what they did to the drivers,” Soto said. “I got involved in the strike because I’m seeing a lot of unfairness there.”

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Read Nick Bilton’s Letter to Scott Pelley

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Read Nick Bilton’s Letter to Scott Pelley

Dear Mr. Pelley:

I meant what I said in my letter last week to the 60 Minutes team: joining 60 Minutes is the honor of my career and I am grateful to be working alongside the people who have contributed to the most important television journalism brand this country has ever produced. While I’m new to 60 Minutes, I’ve devoted my career to investigative journalism and storytelling. I started this job excited to collaborate and to benefit from the wisdom and experience of the 60 Minutes veterans, with you among them. For that reason, one of the first things I did in my new role was call you to talk and invite you to dinner. It is a profound disappointment that you rejected that overture and chose ambush instead. Yesterday, you hijacked my first meeting with staff to disparage me, my qualifications, and my intentions with remarkable incivility and contempt. I welcome a diversity of viewpoints and respectful debate among the team, but this was nothing of the sort. Yesterday’s performative display of hostility enacted in front of the staff instead of in a civil, private conversation-demonstrated that you have no interest in contributing to the future success of the show, or approaching my new tenure with a mind open to collaboration and progress. I am here to deliver first-in-class news programming, not to make headlines about newsroom drama. I am eager to work alongside those who share this goal.

Despite yesterday’s misconduct, I had hoped that in sitting down with you today we could find a path forward together. You made clear that you are not interested in such a path.

Your antipathy to the future of the show has come through loud and clear. And I have heard you. I therefore write on behalf of CBS News, Inc. (“CBS”) to inform you that your employment with CBS is terminated for cause effective immediately. Enclosed is your formal termination letter.

Sincerely,

Nick Bilton

Executive Producer, 60 Minutes

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Aspiration co-founder sentenced to 14 years for fraud

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Aspiration co-founder sentenced to 14 years for fraud

The co-founder of Aspiration, Joseph Sanberg, was sentenced to 14 years in prison on Monday after defrauding investors and lenders of over $248 million.

The startup, an eco-friendly digital banking company boasting fossil fuel-free investments, carbon offsets for gas purchases, and a debit card with cash-back benefits for shopping at clean companies, was founded by Sanberg and Andrei Cherny. Cherny left the company in 2022 and has not been charged.

Sanberg, an Orange County native, pleaded guilty to wire fraud in October after being arrested in March last year. Aspiration subsequently filed for bankruptcy and liquidated all of its assets by July.

Sanberg and venture capitalist Ibrahim AlHusseini, who also faces charges, together forged a series of bank statements in order to obtain loans. From 2020 to 2021, the pair forged AlHusseini’s bank statements to show millions of dollars in assets in order to obtain millions of dollars from lenders.

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Additionally, they forged a letter from their audit committee stating that $250 million in funds were available, when in reality Aspiration had less than $1 million. The amount of loans defrauded exceeded $248 million.

In 2021, Sanberg artificially inflated Aspiration’s 2021 revenue by $44 million by recruiting 27 fake customers to sign letters of intent pledging tens of thousands of dollars per month for tree planting services. Sanberg himself funded the contracts and used the inflated revenue numbers to obtain more loans.

The charges sparked an NBA investigation into salary cap allegations due to Aspiration’s connections with Clippers owner Steve Ballmer.

Ballmer personally invested $60 million in Aspiration, all of which was lost. He is now the target of a civil lawsuit alleging his participation in the scheme. Ballmer denies the allegations.

The team announced a $300-million sponsorship deal with Aspiration, and Clippers player Kawhi Leonard signed a four-year, $28-million marketing contract with the company, which reportedly performed no duties. The issue has raised concerns about how players are circumventing the NBA’s salary cap.

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The team lost the $300-million sponsorship deal and an additional $20 million paid for carbon offset purchases.

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Monterey Park takes landmark vote on banning data centers

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Monterey Park takes landmark vote on banning data centers

Residents in the city of Monterey Park will be the first in the nation to vote on a permanent ban on data centers Tuesday.

If approved, Measure NDC would prohibit data centers within the city limits and could only be overturned by another vote.

Yard signs saying “No Data Center” in English and Chinese with images of dragons line sidewalks in the San Gabriel Valley city.

As a wave of data center opposition sweeps the country, numerous towns and counties across the U.S. have instituted temporary moratoria and other restrictions on the facilities. But only a handful have instituted indefinite bans, and just four other towns have sent related matters to the ballot.

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Supporters are hoping the vote will set a precedent for the rest of the region, where residents are fighting proposals in Vernon and City of Industry.

“This is about as permanent a ban as we can get,” said Steven Kung, co-founder of the group No Data Center Monterey Park. “Winning Measure NDC would send a huge message to the rest of the San Gabriel Valley about how residents don’t want data centers.”

The ballot measure emerged from the fight against a 247,000-square-foot center proposed in 2024 by the Australian-owned investment firm HMC StratCap for a residential area in Monterey Park.

The facility would have sat less than 500 feet away from the nearest home and used three times the electricity of the 60,000-person, predominantly Asian American city.

While the developer touted the potential for jobs and tax revenue, residents expressed concerns about noise and air pollution, rising electricity rates and a potential to lower property values.

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The company pulled its plans in late March following public outcry and a March 4 city council vote to extend a temporary data center moratorium and place a ban on Tuesday’s ballot.

In a letter to the city council, HMC StratCap said it would pursue a different use for the land and would not engage in a ballot measure fight.

The city council later banned data centers indefinitely, the first in California to do so, said Mayor Elizabeth Yang. But she’s still been out campaigning for the measure with all four other council members.

“If a council puts in an ordinance, a future council can reverse it too,” said Yang. “With the ballot measure, unbanning it is a lot harder because you need the entire city to vote on it.”

The measure proposes the ban “to protect air quality, drinking water resources, and public health” and “prevent impacts to electricity and water rates.”

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While California places third in the country for existing data centers with about 300 facilities, it hasn’t been a hot spot in the recent AI-driven data center boom. High electricity rates, expensive land and regulatory hurdles mean that fewer, and smaller, facilities are currently planned than in Virginia, Texas, Georgia, Illinois or Arizona.

“Most of California’s data centers are small by today’s standards,” said Shaolei Ren, an engineering professor at UC Riverside who studies how to reduce the environmental impacts of data centers. “Ten years ago, they would be medium-sized, but the power demand for new AI data centers has increased a lot.”

The average operating data center demands 45 megawatts, according to the Washington Post, while the average planned one would draw 430 MW. The one proposed for Monterey Park would have required about 50 MW at peak demand.

As proposals crop up in SoCal, they’re met with fierce opposition. Montebello, El Monte and Baldwin Park have all enacted temporary moratoria, and Alhambra recently banned data centers as part of a zoning code update. City of Industry, Vernon, City of Commerce and Santa Fe Springs are moving in the other direction, trying to court developers and streamline data center approvals. Community groups are fighting that.

Outside the San Gabriel Valley, residents of Coachella and Imperial County are showing up in droves to protest local proposals.

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Matthew Shaw, a volunteer with the Coalition for Responsible Data Center Development, who recently published a report on opposition to AI data centers, said a vote to ban them in Monterey Park “would lead to copycats, partially because so many groups are just opposed to any data center development at all.”

While there is no formal opposition to Measure NDC, some building trades like Ironworker Local 433 supported the Monterey Park data center when it was still live before city council. Those in the data center industry are lamenting the state of public opinion.

“These are multi-billion-dollar assets that are built by multi-trillion-dollar companies. These things will get done,” said Mehdi Paryavi, chairman of the International Data Center Authority. “My biggest problem is that our industry does not invest enough in community engagement.”

Paryavi said towns that seek to limit data centers are missing out on thousands of jobs generated by data center construction, operations and customers, as well as faster artificial intelligence speeds and better performance.

Kung said local community organizers are “looking at the empirical evidence” and seeing a ban as a win.

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“We’ve never seen a city that embraces a data center and is like, ‘Look how our quality of life has increased, look how all the revenue has gone into citywide improvements,’” he said. “That just doesn’t exist.”

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