A cafe that called itself the oldest coffee shop in Long Beach’s East Village closed abruptly last month after a judge ruled it owed tens of thousands of dollars in unpaid wages to former employees.
Previously called the Village Grind before relaunching as the East Village Café around 2020, the State Labor Commissioner’s Office says the business cheated employees out of $65,000, mostly by not paying them minimum wages and overtime.
With additional penalties tacked on, owner Richard Saldana was ordered in 2019 to pay $69,646. Instead, authorities allege, he tried to dodge the debt by transferring the business to his fiancée and mother, who began running it under the new name, “at least on paper.”
After years of trying unsuccessfully to collect from Saldana, the Labor Commissioner’s office asked a judge to hold the East Village Café and its new owners liable as well. They argued it was a direct successor to Village Grind, meaning it should be responsible for paying the outstanding debts.
The state agency characterized the East Village Café as a “mere continuation” of the Village Grind, despite the new owners claiming that Saldana “no longer plays a role in the business.” Through several examples, investigators argued that Saldana maintained financial control.
According to court papers, he kept the cafe’s lease in his name and signed its rent checks through December 2020. He also maintained a credit card in the business’s name, using it to pay personal expenses — purchases include Hulu, SiriusXM, Spectrum, Game Stop, and various restaurant bills — later found on its bank statements.
“Clearly, he remained heavily involved in the business,” attorney Matthew Sirolly wrote on behalf of the Labor Commissioner’s office. He characterized the new owners as either “strawmen” or “business partners” who became “the public face of the business” after the original judgment.
In a call last week, Saldana’s fiancée, Emelida Garcia, disputed the agency’s claims.
“They were very adamant that (East Village Café) and the (East Village Grind) were the same business, essentially owned and operated by the same person, when it clearly wasn’t,” she said. “I went to court to try to dispute my case, and they just were not letting it go.”
During an investigative deposition, Garcia said they had no formal agreement to take over the Village Grind’s assets and “paid nothing for them.” When asked, Garcia could not recall how much she paid for the business.
Although she previously testified that three employees at her business also worked at The Village Grind, she said Tuesday none of her staff ever met or interacted with Saldana.
Los Angeles County Superior Court judge Jerrold Abeles ruled on Aug. 27 that Garcia and Saldana’s mother are liable to pay the original sum plus all interest accrued since 2019.
More wage claims are also pending against them. The East Village Café is being investigated for more than $27,700 across three wage theft claims filed between September and January, the state Labor Commissioner’s office confirmed Thursday.
It’s unclear if workers will see a dime.
Asked about her plans, Garcia said the business “has no money” and “has officially closed down.” She said a recent ADA lawsuit that cost the business $8,000 and a $5,000 payment for wage claims drove her finances to the brink.
“I’m moving out of my own home,” she said. “Since I will have zero type of income, I can’t afford to live in my apartment. So I’ll be moving in with my family until I can get back on my feet again.”
The Labor Commissioner’s office said Thursday that the current three wage claims are under investigation and cannot comment further.