Original Mike's Sexual Harassment, Wage Violation Trial Continues

SANTA ANA, CA — In a sexual harassment lawsuit firestorm, an Orange County Superior Court judge will decide whether Original Mike's restaurant was a hostile work environment, without a jury. Judge William D. Claster will also determine the depth of personal liability of owner/developer Michael Harrah. The Original Mike's restaurant manager, Juan Orozco is accused of over 8 counts of sexual harassment after firing workers for claiming sexual harassment and wage violations.

Harrah is also facing a class action lawsuit alleging denial of work breaks and failure to pay overtime.. Harrah, who faces personal liability allegations from at least eight former employees, repeatedly testified Monday that he was fuzzy on the financial details of his failing eatery. On Monday, Harrah's testimony was heard.

During that testimony, attorney Bradley Gage played a number of clips from his depositions that appeared to contradict Harrah. At least eight former employees have joined the suit alleging sexual harassment by Orozco, the restaurant's general manager. Some employees accused Orozco of groping employees and refusing to give them shift assignments if they didn't line up to kiss and hug him at the end of the day.

Claster previously ruled that Harrah used money from his other companies to pay Original Mike's bills and that he filed for bankruptcy just days before a previous trial so he could dodge the case going to trial.

Harrah testified he would discuss the sagging business, which was losing about $200,000 annually, with Orozco "maybe once or twice a year." Gage then showed the judge a clip of Harrah in a deposition saying he discussed the financial problems with managers once a month or once every couple of months.

Harrah also acknowledged receiving daily sales reports on an email chain from the accountant.

Claster at one point questioned Gage about his line of questioning establishing which companies Harrah owned or controlled.

"Aren't some of these issues established?" Claster asked. "He's not disputing any of this, though his memory is far from perfect."

When Gage asked Harrah if he set up one of his companies as a limited liability company that couldn't pay off any legal claims, Harrah replied, "That would be an accountant-attorney deal. They set this up for us."

Harrah testified his decision to declare bankruptcy in 2015 for Original Mike's stemmed from "legal advice."
Since the restaurant had been losing $200,000 annually since its opening in 2007 "was there a change in earnings or liability" at the time of the bankruptcy, Gage asked Harrah.

"That could have been," he replied. "I don't recall."

Under questioning from Harrah's attorney, Will Klatte, the developer testified he didn't personally calculate losses and gains of the restaurant and that any numbers "were given to me by attorneys or accountants, I suppose."

In 2010, Orozco was given a 10-year contract that paid $5,000 a month, Harrah testified. Orozco wasn't sure if he could do the job so he wanted an opt-out after five months, Harrah testified.

Orozco wanted to be an independent contractor, but since he did not get worker's compensation insurance he was put on the company payroll, Harrah testified.

The women in the lawsuit claimed they were fired when they claimed sexual harassment and wage violations. Harrah is also facing a class action lawsuit alleging denial of work breaks and failure to pay overtime.

City News Service, with Ashley Ludwig, Patch Editor.

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