Osaka Japanese Steakhouse Owner Has Yet to Pay $1 Million in Back Wages to 200 Former Staffers

Tony Di Domizio | North Penn Now•

The 77-year-old owner of former sushi restaurants Osaka in Towamencin and Chestnut Hill, who agreed in 2019 to pay $1 million in back wages, tips and fees to settle a federal lawsuit that claimed he stole wages from his workers, has not yet paid the penalties to his employees or the government, according to the Inquirer.

The federal government in February 2020 filed a $1 million lien against the properties owned by Kwang Bum Kim, including his former Germantown Avenue restaurant in Chestnut Hill and his Blue Bell home, the report states. A successful lien, per the report, could result in money for workers if the Kim decided to sell or refinance his home, however under Pennsylvania law, if a judgment is placed against someone, properties that have joint ownership with a spouse cannot be taken to pay a debt.

Kim agreed to pay $935,000 in back wages and damages to 201 servers, bussers, hibachi chefs, and dishwashers, and $65,000 in civil penalties to the U.S. Department of Labor. The government said Kim shorted workers and failed to pay overtime, with some individuals owed as much as $30,000.

According to Philly Voice, the owners of Osaka — formerly located along the 1500 block of Sumneytown Pike in Towamencin — pocketed above-average percentages of customer tips on credit cards and failed to pay the proper overtime premium of time-and-a-half dating back to September 2013. Back-of-house staff, including chefs, cooks, and dishwashers, were paid a flat rate of $80 to $150 a day, even though many worked 50 to 60 hours a week.

Neither the employees nor the government has received anything in the four years since the judgement.
Kim did not respond to requests for comment from the Inquirer sent via lawyers, voice mails and registered mail, per the report, and he reportedly cannot be located.

Both the Towamencin and Chestnut Hill locations have closed in the years since the federal lawsuit.

According to the Inquirer, winning a result in a government investigation or court case for wage theft is just one part of the situation. The other part is successfully collecting on the wage theft judgments, something states and the federal government struggle with daily, per the report.