Padre, Mezcalero owner accused of wage theft, gross mismanagement that spurs criminal investigation

Outside the shuttered Padre restaurant, the continuous hum of a 56-kilowatt generator can be heard. The towable power source has been parked on the restaurant's neglected outdoor patio for weeks powering the building—including Mezcalero, the second-story bar—which is still operating.

Former employees of the restaurant and bar allege owner Jay Krymis owes tens of thousands of dollars in back pay and past tips, and note the remaining business operating on a generator is the perfect symbolism: “The metaphor can't write itself any f—ing better,” one worker said. “He has [it] on life support.”

In interviews with the Watchdog, four employees, three of whom asked to remain anonymous due to ongoing legal battles, allege it was common for paychecks to bounce, utilities to go unpaid and for basic operational needs to not be met. Other former employees have made similar accusations online.

Krymis, for his part, confirmed many of the allegations, but claimed some — namely the number of employees he still owes money to and how much — are exaggerated.

“It’s a mess,” Krymis said in a phone interview Monday. “I failed them.”

Labor violations and poor business practices

After moving to Long Beach in 2018, Josh McArthur, 28, got a job at Padre as a line cook. As a transplant, he said he made all of his Long Beach friends and connections through the restaurant.

“I found a big family at that place,” McArthur said, adding that the work atmosphere and bonds among workers are the primary reasons employees put up with the innumerable issues with Krymis and management for so long.

The restaurant meant a lot to McArthur, who said it was a “huge honor” when he was moved out of the kitchen and behind the bar — a move that he was “super proud of.” But last month, McArthur finally made the decision to quit along with more than a dozen others.

While bouncing checks were a rarer occurrence in his earlier years, McArthur said it became the norm over the past year. Another former employee, who worked as a barback for Krymis from December 2022 to October 2023, said it wasn’t uncommon for managers to tell workers to wait to deposit their checks until the business had sufficient funds to cover them.

After consulting with Mezcalero to train new staff after several members quit, another ex-employee said he was asked to open Krymis’s new restaurant concept Downtown as executive chef. In that role, he said he was paying for product out of pocket to develop a menu, but was never reimbursed. Additionally, he said he left chef's knives, pans, personal recipe books and other equipment at the new space, which has since disappeared.

All said, the worker said he was owed at least $5,000.

“This past week, he sent me $1,000 and told me, ‘Thank you for being patient,’” the worker said, noting that he is still owed thousands of dollars.

The workers all said that while they were working, they were making enough from tips that late paychecks were not breaking the bank. But now that they are no longer employed, the backpay is desperately needed to make ends meet as they look for work.

“I’ve received letters to vacate my apartment, I burned through my savings,” one of the workers said, adding that he gets asked at other establishments if he was “part of the problem” at Padre and Mezcalero.

While Krymis confirmed paychecks have bounced, he claims there is “no way” it has been a problem for even a year. Employees, meanwhile, say checks have been bouncing sporadically since at least 2019.

Krymis admitted that he owes two managers money, but did not specify how much. He said he is in the process of taking out a loan to pay those managers, with any remaining money going toward his new restaurant. One of the managers was paying workers out of his own pocket, both employees and Krymis said.

“It’s embarrassing but that’s where we stand,” Krymis said. “We’re not trying to shirk anybody.”

The remaining employees, he claims, are fully caught up. The workers, however, said that is not true, adding that the few final checks that were received have already bounced.

Some of the operational issues were due to the building's age, Krymis said, including a broken AC amid summer heatwaves and losing power due to a faulty electrical panel, which necessitated the need for the massive generator outside. But with the uncertainty of when the landlord would give him the boot, Krymis said it didn’t make sense to spend thousands of dollars on repairs.

In 2021, the Long Beach Planning Commission approved a seven-story residential development for the land on which Padre and Mezcalero sit. Since then, Krymis says the landlord has strung them along. The property owner could not be reached for comment.

With no definitive timeline for shuttering the space, Krymis put off repairs, which gradually worsened.

But employees argue customer and worker safety should have been the priority. One employee recalled at least one instance where a customer passed out in the bar due to heat exhaustion. Back of house prep areas, meanwhile, would reach upward of 95 degrees, they said.

“We were all left feeling really, really resentful,” the worker said of working through summer 2023.

At one point, the building’s water was shut off because the bill was not paid. Workers said management still wanted to open, saying they would provide water bottles for hand washing and other uses. By law, restaurants and bars are required to have hot, running water.

Krymis confirmed the water was shut off but noted the issue was resolved within a day.

Workers also said the business regularly ran out of basic necessities such as rags and paper towels, and that equipment, including dishwashers, did not work properly.

“These are issues of me being the de facto owner and not the manager. If I was the manager, none of this would have happened,” Krymis said. “I’m mad at myself. I’ve been doing this for so long and I’m tired. It was a huge mistake.”

In a video sent to the Watchdog, a young woman can be seen behind the Mezcalero bar pouring a shot. The text on the Instagram story reads, “Lawless land.” Krymis and workers confirmed the identity of the woman and the fact that she is only 19. Under California law, people under the age of 21 are prohibited from bartending.

When asked about the incident, Krymis said he had no prior knowledge of it and could not himself identify the young woman, who is a former employee he claims to have never met. Krymis confirmed her identity with a manager and said “no minors or ex-employees should be behind the bar.”

“She was written up several times for a number of issues,” Krymis said of her previous employment.

Though he acknowledged the fault lies with him as the owner, Krymis did shift some of the blame to his managers.

“I wasn’t there enough, that’s my problem,” Krymis said. One former employee, who had worked for Krymis from May 2023 until last month, said he met his former employer one time.

“The buck stops with me,” Krymis continued, saying he didn’t know most of the employees' names and that he entrusted operations to his managers. “I’m responsible for everything.”

Krymis said he was unaware of how some of the finances were being handled as well as many of the operational shortfalls at the restaurant and bar.

A couple weeks ago, losing money, Krymis shuttered Padre but kept Mezcalero operating upstairs. Employees claim the kitchen was shut down with no notice given to workers.

Krymis, meanwhile, said he told all his Padre and Mezcalero staff to apply for jobs at the new restaurant concept he is getting ready to open in Downtown Long Beach.

“This is really bad. It’s not at all a reflection… I’m not the person, and my managers aren’t, that would try to do things nefarious,” Krymis said. “We love our staff. I wasn’t there enough; that’s my problem.”

Mezcalero will likely be shuttered by next week, he added.

Lawsuits, a criminal investigation and a new restaurant

Tired of the back-and-forth with Krymis, workers say they are in the process of filing a class-action lawsuit, stating he owes employees at least $70,000 in back pay and past tips. When including other monies not paid to DJs, artists, various vendors as well as for utilities and rent, employees say Krymis owes more than $300,000.

The figure also includes penalties owed to workers for late payment under California law.

Simultaneously, workers said, the Long Beach City Prosecutor’s Office has begun reaching out to Krymis’s former employees as part of a criminal investigation related to the wage theft claims. City Prosecutor Doug Haubert declined to comment.

In May, Haubert’s office was awarded $414,392 from the California Department of Industrial Relations and the Labor Commissioner’s Office as part of the Workers’ Rights Enforcement Grant program.

“Wage theft is a persistent problem, and this funding helps address it in local communities across our state,” LCO Commissioner Lilia García-Brower said at the time. “The 17 applications we received demonstrate prosecutors’ commitment to curtail and eradicate this abusive behavior.”

The ex-employees said Krymis owes the property owner “almost $100,000” in unpaid rent. While he admitted he does owe, Krymis said that figure is “crazy.” A lawsuit filed in April by landlord 510 Broadway, LLC against Krymis Productions, LLC, however, stated Krymis owed the landlord over $151,000, or about 12 months worth, in back rent at the time.

It’s unclear how much is currently owed.

“Something needs to happen because it’s just going to be a reoccurring cycle at the new location, too,” one worker said.

Amid the allegations and now two investigations, Krymis has been slowly working toward the opening of his new restaurant, ¡Toma!. The new concept is located at 301 The Promenade N., a prominent location with a history of failed restaurants, including Lupe’s De La Mar and Table 301.

The area is experiencing something of a renaissance after the rebranding by new ownership to Mosaic, including events such as the weekly Night Market right outside of ¡Toma!’s doors. Plans are already in the works for massive redevelopment that includes hundreds of residential units a short walk from the restaurant.

Getting the new space across the finish line amid his financial woes has been a “challenge,” Krymis said, noting that he has had to downsize his apartment and car, max out his credit cards and wipe out his savings in addition to taking out a loan.

Krymis said he is hoping to open ¡Toma! in the next couple weeks after menu testing wraps up, but added that he is feeling uneasy about the future of the restaurant given the hot water he currently finds himself in.

“I don’t know how this is going to hurt that business. It’s not good, right?” Krymis said. “I’m not sure where to go from here. I feel bad. I’m hoping that people still come and they forgive me. It’s a chance to start over.”