Austin restaurant settles employee lawsuit with $70,000
Hao Hao restaurants in Austin, Texas, recently settled an employee lawsuit by agreeing to pay 10 workers more than $70,000. An investigation by the Department of Labor's Wage and Hour Division revealed the employer was violating minimum wage, overtime and child labor provisions of the Fair Labor Standards Act (FLSA).
Instead of paying workers at least minimum wage rates for all of their hours worked in addition to overtime premiums (time-and-a-half) for employee attendance exceeding 40 hours, the employer was issuing a flat salary. Those earnings were not equal to, or more than, the mandated minimum wage, and the workers were still eligible for overtime pay.
Moreover, a 16-year-old-worker was allowed to operate a power-driven meat slicer, which violates child labor laws preventing those under 18 from using or cleaning hazardous equipment.
"In this case, the employer took advantage of low-wage, vulnerable workers who were unaware of their rights provided by the FLSA," said Cynthia Watson, regional administrator for the Wage and Hour Division in the Southwest. "The department remains committed to protecting workers and law-abiding employers by ensuring that competitors who ignore their legal obligations do not gain a competitive advantage."
Restaurant owners and operators should be especially careful when it comes to complying with labor rights, since violations are often found within the industry.
Instead of paying workers at least minimum wage rates for all of their hours worked in addition to overtime premiums (time-and-a-half) for employee attendance exceeding 40 hours, the employer was issuing a flat salary. Those earnings were not equal to, or more than, the mandated minimum wage, and the workers were still eligible for overtime pay.
Moreover, a 16-year-old-worker was allowed to operate a power-driven meat slicer, which violates child labor laws preventing those under 18 from using or cleaning hazardous equipment.
"In this case, the employer took advantage of low-wage, vulnerable workers who were unaware of their rights provided by the FLSA," said Cynthia Watson, regional administrator for the Wage and Hour Division in the Southwest. "The department remains committed to protecting workers and law-abiding employers by ensuring that competitors who ignore their legal obligations do not gain a competitive advantage."
Restaurant owners and operators should be especially careful when it comes to complying with labor rights, since violations are often found within the industry.
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