California restaurant ordered to pay back wages for overtime

The U.S. Department of Labor recently ordered a restaurant in Sunnyvale, California, to pay $404,000 in unpaid overtime.

Crazy Buffet, a Chinese restaurant, has been ordered to pay 32 employees for violation Fair Labor Standards Act (FLSA) wage and labor laws. According to the lawsuit, employees were at times required to work as many as 72 hours in single workweek and were paid straight time - the standard pay rate - instead of the premium overtime rate. The workers estimated that they worked between 60 and 72 hours a week on average.

Additionally, the restaurant's waitstaff was only being paid in tips for eight months during which the owners required them to return their pay checks. In California, tipped employees like waiters and waitresses earn gratuity plus minimum wage, which is $8 per hour instead of the $2.13 per hour required by the FLSA.

The parent company, United Buffet, did not respond to the charges, and instead compensated the employees $201,000 for unpaid wages and $200,000 for liquidated damages. Each worker will receive between $600 and $46,000, depending on their employee attendance