A popular Southside restaurant has shut its doors under a court order for not having workers’ compensation insurance, and is to remain closed until they obtain insurance and pay the more than $14,000 in fees owed to the state.

The J. Clyde, located at 1312 Cobb Lane on Birmingham’s Southside, closed earlier this month after a judge ruled the restaurant in contempt of court for operating without proof of workers’ compensation insurance. The restaurant posted a sign on its doors stating, “The J. Clyde is temporarily closed. We are currently addressing the issue and will be reopening as soon as possible. We apologize for any inconvenience.”

A sign issued by Jefferson County Sheriff Mark Pettway was also posted on the door, which was covered in caution tape and secured with a lock. That sign said the business was closed “for failure to provide workers’ compensation.”

Court records show the restaurant’s closing comes after months of legal battles, beginning when the restaurant was sued by the Alabama Department of Labor in August for not having workers compensation insurance. The latest order in the case came in late April, when Jefferson County Civil Circuit Judge Carole Smitherman ordered The J. Clyde to shut its doors until the restaurant owners could provide proof of insurance and pay outstanding fines.

Alabama law requires all businesses with five or more employees to have workers’ compensation insurance coverage, or provide proof of their financial ability to self-insure their workers’ compensation liabilities. In its August lawsuit, the state Department of Labor claimed The J. Clyde had over five employees and “on numerous occasions” did not provide proof of worker’s compensation coverage.

In November, after the restaurant didn’t respond to the state’s lawsuit, Smitherman ordered The J. Clyde provide proof of insurance coverage within 10 days and also prohibited the restaurant from operating until that proof was provided to state agents. The judge fined the restaurant $1,000 and ordered that if, after the 10-day period, The J. Clyde still did not provide proof of workers’ compensation insurance, they would be ordered to pay a $100 per day penalty.

In January, the state filed a motion claiming The J. Clyde had not shown proof of insurance and was still operating. The state asked the judge to hold the business in contempt of court and also the “[shut] down and padlocking the [J. Clyde] until such time as they have paid all outstanding fines and penalties to the Department, and have provided proof of the required workers’ compensation coverage.”

The business owners did not appear for court dates or respond to the contempt allegations in court records. From the beginning of the suit in August through June 2019, The J. Clyde did not respond to any court documents, orders, or the Department of Labor’s complaint. No attorneys were listed for the restaurant.

The J. Clyde closed earlier this month under a court order for not having workers’ compensation insurance. The door remains padlocked (Ivana Hrynkiw | ihrynkiw@al.com)

On April 25, Smitherman issued an order holding The J. Clyde in contempt of court and stating the business must shut down because there was no workers’ compensation insurance in place. According to the judge’s order, The J. Clyde owes the state $14,600 in penalties, not including the payments needed to obtain worker compensation insurance.

The judge ordered the restaurant close until it can show proof of insurance and pay all penalties and fines. She also ordered the Jefferson County Sheriff’s Office to accompany an agent from the state as they padlocked the doors of The J. Clyde.

Attorneys for the Alabama Department of Labor declined to comment, but said they have not yet received proof of workers’ compensation coverage and the restaurant remains closed. Request for comment to The J. Clyde’s owner was not returned by the time of publication.