Between managing suppliers, busy dining rooms, and online orders, many restaurant owners may overlook payroll compliance. However, lapses in this area can result in legal challenges that are often more burdensome than operational difficulties.
Falina Marihart, a local restaurateur and business owner, has launched MP Consultants to address these concerns for restaurants across California. Drawing on her experience as the owner of 13 Prime Steak in Clovis and Yolked Kitchen, which opened in 2024 at the Parkway Trails Shopping Center, Marihart aims to share her industry knowledge with other restaurant operators.
“I’ve taken our experience in the industry — and my experience on the board of the CRA (California Restaurant Association) — to help our restaurant owners understand what payroll compliance is so they can avoid being caught in lawsuits,” Marihart said.
The formation of MP Consultants was prompted by a rise in lawsuits under California’s Private Attorney General Act (PAGA), which enables employees to file wage-related claims against employers on behalf of the state.
“From personal experience, we discovered that a lot of restaurant owners are very vulnerable,” she said. “There are a lot of laws when it comes to how to pay employees and overtime wages, split-shifts — everything that you can think of that’s related to how to pay an employee.”
Marihart explained that her team has studied various payroll requirements relevant to different types of food service businesses throughout California.
She likened some lawsuits against restaurant owners to those pursued by accident attorneys after car accidents. “It’s pretty sad because they’re just trying to stay in business,” she said. “It’s just another thing that we have to deal with in California.”
Payroll regulations differ not only between states but also among cities within California. This variation requires restaurant owners to stay updated on changing rules that could impact their operations’ success.
Marihart noted both new and established business owners face financial risks if they do not keep up with labor laws.
Despite operating since July, MP Consultants has already received positive feedback from industry professionals. The company recently attended the California Restaurant Show in Anaheim where they connected with other restaurant and franchise owners statewide.
“They were saying this is such a need for the restaurant owners,” she said. “The best part is it’s all private — it’s not like we’re a regulatory industry; we’re basically just saying, ‘Hey. Here’s how you can lessen your liability if something comes your way with any type of suit or anything legal.’”
Marihart pointed out that many payroll companies process payments without knowing details about which employees should receive certain wages for specific hours worked. This misunderstanding can increase risk for restaurants if compliance issues arise.
“This is really new, and the industry needs some time to get familiar with it,” she said. “From the feedback that we’ve got so far it’s been great, because at every level, everybody’s saying that this needs to be done for restaurant owners.”
MP Consultants has formed partnerships with organizations such as the CRA and Payroll Expert Kimberly Smith (PHRca) who helps conduct audits for clients.
