In a recent investigation, the U.S. Department of Labor (DOL) has successfully recovered $17,006 in back wages for five workers from a restaurant. The restaurant failed to properly pay overtime wages to its employees, violating the Fair Labor Standards Act.
Restaurant Owner Fails to Properly Pay Overtime Wages
DOL’s Wage and Hour Division discovered that the restaurant calculated overtime rates incorrectly for tipped employees, resulting in overtime pay rates lower than what the law mandates. Additionally, the employer lacked accurate records of employee work hours, denying rightful overtime pay to those with unrecorded hours and individuals not on the payroll.
Wage and Hour Division District Director Lisa Kelly emphasized that employers who do not pay legal wages gain an unfair advantage over their law-abiding counterparts. The recovered amount, averaging $3,400 per employee, signifies a substantial sum for workers, particularly those heavily reliant on tips to support themselves.
How It Started
The investigation was initiated based on information received through the Employment, Education, and Outreach Alliance. This collaborative effort involves various community organizations, alongside state, local, and federal agencies, focusing on providing information and assistance to Spanish-speaking employees and employers regarding their workplace rights and responsibilities.
Conclusion
Kelly emphasized the significance of outreach alliances like EMPLEO, which help workers understand their legal rights and empower them to raise concerns without fear. The Wage and Hour Division continues to offer resources in multiple languages to ensure both employers and employees are informed about their respective responsibilities and rights under the law. It is a reminder to businesses of all sizes to remain compliant with employment laws and regulations to avoid penalties and legal actions.