Inside the Zipps Sweep: How 35 Employees and 15 Restaurants Became the Center of a Federal Employment Fraud Storm

A coordinated federal investigation has placed 15 restaurants and 35 employees at the center of what authorities describe as a sweeping employment fraud probe — a case now being referred to by insiders as the “Zipps Sweep.”

According to federal officials, investigators are examining allegations that multiple restaurant locations engaged in systemic hiring violations and payroll irregularities. The probe reportedly spans several cities and involves coordinated inspections, employee interviews and the review of financial records.

What Investigators Are Looking At

Authorities are focusing on whether certain workers were improperly classified, paid off the books or hired using fraudulent documentation. Federal agents executed compliance checks across the restaurant group’s locations, reviewing employment eligibility records and wage documentation.

Sources familiar with the investigation say the case could involve potential violations of federal labor and immigration laws, though no final determinations have been publicly announced.

35 Employees Under Scrutiny

At least 35 workers are reportedly under review as part of the inquiry. Officials have not released individual identities, citing ongoing investigative procedures. It remains unclear whether the employees themselves are targets or witnesses in a broader case against management practices.

Legal experts note that in large-scale employment fraud investigations, liability can extend to business owners, payroll administrators or third-party contractors depending on how documentation and hiring procedures were handled.

Business Fallout

The 15 restaurants involved remain operational in some locations, though several have faced temporary closures or compliance inspections. The case has raised concerns about oversight in the hospitality industry, which often relies on high-turnover staffing and complex payroll structures.

Industry analysts say employment fraud cases can carry significant penalties, including fines, restitution orders and potential criminal charges if willful misconduct is proven.

What Comes Next

Federal authorities have not yet announced formal charges. Investigators are expected to continue reviewing records and conducting interviews in the coming weeks.

For now, the “Zipps Sweep” underscores the growing scrutiny on employment practices in the restaurant sector — and serves as a reminder that payroll compliance is no longer a back-office issue but a matter of federal enforcement.