Quick Take
The company that owns the Santa Cruz Beach Boardwalk will pay $5.9 million to settle a class-action lawsuit claiming that it cheated employees out of overtime pay and failed to follow California labor law in other ways, including allowing meal and rest breaks. After legal fees, employees who worked at Seaside Company locations from July 25, 2019, through Aug. 11, 2024, will receive a combined $3.5 million.
The Santa Cruz Seaside Company, owner and operator of the Santa Cruz Beach Boardwalk, will pay $5.9 million to settle a class-action lawsuit alleging employees were cheated out of overtime pay and subjected to violations of California labor law, including being denied breaks.
As part of the settlement agreement, preliminarily approved by the court in September, the Seaside Company officially denied any wrongdoing.
A former employee, Serena Sanford, filed the lawsuit in July 2023 after working as a seasonal food-service staff member at the boardwalk from August 2016 to December 2021, according to court documents.
In the class-action lawsuit, Sanford accused the Seaside Company of failing to pay overtime wages, failing to provide meal and rest breaks and failing to provide timely payment of wages upon termination of employment, among other “unfair business practices.” No other employees who were alleged to have been affected by what Sanford alleges were specifically named in the lawsuit.
One former employee, who asked to remain anonymous for fear of retaliation, told Lookout that they had already received a letter in the mail notifying them of the class-action settlement, but the payment amount wasn’t yet determined.
After attorneys fees and processing fees, more than $3.5 million remained for payments to employees who worked at the Seaside Company locations from July 25, 2019, through Aug. 11, 2024, according to court documents.
The Seaside Company, formed in 1915, operates the Beach Boardwalk, Boardwalk Bowl, the Sea and Sand Inn and the Carousel Beach Inn. At the Boardwalk, the Seaside Company operates all the rides, games, arcade and miniature golf as well as more than a dozen locations there offering food and drinks. Other concessionaires, such as Whiting’s Foods, run some of the 42 food locations there.
A spokesperson for the Seaside Company provided a statement from the company, but was not able to respond to questions about the number of employees who are receiving payments.
“As a family-owned and operated century-old company, the trust and well-being of our employees is vital to us, and we care deeply about ensuring everyone in our employ is treated and compensated fairly,” the statement reads. “While we deny the allegations in this case, we are pleased to agree to this settlement and put this matter behind us.”
Company attorneys didn’t provide a comment by deadline.
The attorneys for Sanford declined to provide a comment for this story.
“Because I thought the practices at Santa Cruz Seaside may not be lawful, I decided to seek legal advice about my work experiences at Santa Cruz Seaside and about filing a lawsuit to obtain relief for my grievances,” Sanford wrote in court documents. “I wanted to take steps to make sure Santa Cruz Seaside was held accountable for not properly compensating its employees for all hours worked and for non-compliant meal and rest breaks.”
After a final approval hearing – scheduled for Jan. 30 – settlement checks will be distributed to the employees included in the settlement, according to Seaside Company spokesperson Kris Reyes.
“Each individual settlement amount will depend on how long the individual employee worked for SCSC. Currently, SCSC has approximately 1,185 employees,” he wrote to Lookout.
For the Record: This story has been updated to correct references to Serena Sanford’s name.
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