SAN DIEGO (FOX 5/KUSI) — The San Diego County Office of Labor Standards and Enforcement (OLSE) has filed a major lawsuit accusing several companies operating sushi counters inside grocery stores of exploiting workers through deceptive labor practices.
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The lawsuit, announced Thursday, targets multiple sushi franchise operators, including Ace Sushi Franchise Corp., Asiana Management Group, Advanced Fresh Concepts Franchise Corp., Fujisan Franchising, and Fuji Food Products.
County officials allege the companies misclassified sushi chefs as independent contractors, despite exercising significant control over their work.
According to the complaint, the chefs had little to no independence, with companies dictating nearly every aspect of operations — including recipes, food quality, schedules, and production requirements.
Various sushi and sashimi ready to eat in plastic box package.
“This lawsuit is exactly the reason I coauthored the proposal to create the Office of Labor Standards and Enforcement,” said San Diego County Board Chair Terra Lawson-Remer. “In San Diego County we will continue to advance fair labor standards with a commitment to workplace justice.”
At a news conference outside the County Administration Center, Board Chair Pro Tem Paloma Aguirre called the allegations deeply concerning.
“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,” Aguirre said.
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Officials say the case highlights what they describe as widespread worker exploitation.
“We allege that these chefs were not running their own businesses,” said Branden Butler, director of OLSE. “Workers routinely worked long hours, met company requirements to keep counters stocked, and kept operations running seven days a week.”
Despite generating revenue, the lawsuit claims workers were required to cover basic business expenses, including equipment, ingredients, packaging, uniforms, transportation, and even loses from spoilage or theft.
The case was prompted after a worker contacted the the Employee Rights Center to report concern about working conditions, according to the organization’s director, Alor Calderon.
“The effect of this way of operating on workers and their families is devastating,” Calderon said. “Ongoing food insecurity, constant stress, and no time for doctors or family.”
The case remains ongoing.
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