Boston restaurants get tapped by DOL for $675,000 in back wages and penalties
Three Boston restaurants all owned by Marc Kadish - the Sunset Grill, Sunset Cantina and Big City - were all found in violation of the Fair Labor Standards Act (FLSA) in a recent Wage and Hour Division investigation. Collectively, the restaurants will need to pay 70 employees $337,500 in back wages for unpaid overtime and recordkeeping inaccuracies. In addition, the employer will have to pay an equal amount for liquidated damages and penalties, bringing to the total payout up to $675,000, according to the Department of Labor.
Investigators found some employees were being paid straight time, or standard wages, when they should have been earning time-and-a-half for employee attendance beyond 40 hours. Additionally, some employees were scheduled at more than one location, but the restaurants failed to combine their time and attendance totals, which led to unpaid overtime. There were also recordkeeping violations, since the employer didn't accurately track hours worked.
As a result of the violations, the DOL announced it will be focusing efforts on the area to weed out any other violators. Restaurants that may be in violation can implement a new timeclock or another payroll processing system to ensure employees are receiving the wages they are owned.
"We are putting the industry on notice that violations will not be tolerated. Such behavior not only denies workers their hard-earned wages, it also places other employers who comply with the law at a competitive disadvantage," said George A. Rioux, director of the division's Boston District Office.
Investigators found some employees were being paid straight time, or standard wages, when they should have been earning time-and-a-half for employee attendance beyond 40 hours. Additionally, some employees were scheduled at more than one location, but the restaurants failed to combine their time and attendance totals, which led to unpaid overtime. There were also recordkeeping violations, since the employer didn't accurately track hours worked.
As a result of the violations, the DOL announced it will be focusing efforts on the area to weed out any other violators. Restaurants that may be in violation can implement a new timeclock or another payroll processing system to ensure employees are receiving the wages they are owned.
"We are putting the industry on notice that violations will not be tolerated. Such behavior not only denies workers their hard-earned wages, it also places other employers who comply with the law at a competitive disadvantage," said George A. Rioux, director of the division's Boston District Office.
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