Fair Labor Standards Act
How Documenting Can Keep Restauraunt Operators Out Of Court
In the latest sign of a possible wage-dispute trend in the restaurant industry, five Houston-based restaurants agreed to fork over more than $334,000 in back pay to 154 current and former employees after the Department of Labor found minimum-wage and overtime violations of the Fair Labor Standards Act (FLSA).
The Department’s Wage and Hour Division discovered that non-exempt employees, entitled to “time-and-a-half” pay for overtime under the FLSA, “were being paid straight time for all hours worked, including those worked over 40 in a workweek,” according to a press release issued Friday. “Additionally, the companies did not maintain the required recordkeeping.”
“It is a top priority of this department to ensure that all workers receive the wages they have earned,” said Cynthia Watson, regional administrator for the Wage and Hour Division in the Southwest, in the release. “In these cases, employees were found to be earning hourly rates that fell below the federal minimum wage. This is illegal.”
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