The former owners of the Sweet Lady Jane bakery chain, facing “financial difficulties,” have settled a wage theft lawsuit filed by a former employee, according to court documents reviewed by The Times.
Details of the agreement between SLJ Wholesale LLC and Sweet Lady Jane LLC and Blanca Juarez, who worked at the bakery for about two months in 2022, are under wraps.
The settlement only addressed individual claims by Juarez, who alleged she was not compensated for all hours worked, including overtime, as well as missed meal periods and rest breaks, according to a class-action lawsuit filed in June of last year in Los Angeles County Superior Court.
Juarez and his legal counsel filed a class-action lawsuit to dismiss it on July 9. An attorney for Juarez did not respond to a request for comment. Juarez could not be reached for comment.
Lawyers for the companies behind the bakery denied Juarez's allegations. The court documents did not name the owners of the companies.
The companies said Juarez and other employees who might join the suit received “all amounts due to them.” It is unclear whether other employees have joined the suit.
Attorneys for Sweet Lady Jane's previous owners did not respond to a request for comment on the settlement.
Juarez's legal case was thrown into doubt after the bakery abruptly closed its business on New Year's Day, citing a lack of sales that prevented it from paying its “precious employees,” according to a now-deleted Instagram post from January.
A note from the owners of Sweet Lady Jane bakery informs customers that they have decided to close their Santa Monica business.
(Genaro Molina / Los Angeles Times)
Nearly a week after the closure, lawyers for the bakery filed court papers saying the companies intend to file for a state alternative to bankruptcy, which could allow creditors, including former employees, to try to recover what they are owed.
Negotiations to reach a settlement resolving Juarez’s individual labor code claims began around May, according to court documents. A copy of the agreement was filed with the state’s Labor and Workforce Development Agency on July 9.
Amid the legal battle, Sweet Lady Jane reopened, this time under the ownership of Julie Ngu and Matt Clark.
The couple purchased the bakery's assets, including the recipes and brand, in February, emphasizing in interviews that they “really want to make sure that everyone understands that we have nothing to do with the former owners.”
Tables are stacked against the front counter of Sweet Lady Jane in Santa Monica on January 9, 2024.
(Genaro Molina / Los Angeles Times)
“We are only as good as we treat our own people… Our staff is our number one priority,” Clark told The Times on Friday. “I’m glad that at least that chapter of the old ownership is over.”
