The Department of Labor's Wage and Hour Division recently investigated all of the establishments doing business as China Sea Restaurants in San Antonio and filed a lawsuit against the company to recover more than $1 million in back wages for 164 employees. Three locations were audited during this investigation, in which minimum wage, recordkeeping and overtime violations were allegedly uncovered.

According to the WHD representatives, the company was not properly paying its waitstaff or kitchen staff for their time and attendance because it did not keep accurate records of their hours worked. The employer was also allegedly making illegal deductions from worker' paychecks.

The Fair Labor Standards Act (FLSA) requires that all restaurant workers earn at least minimum wage - $7.25 - for all of their employee attendance even if they are considered tipped employees and receive a lower hourly wage. Moreover, they must receive overtime at a rate no less than one-and-a-half times their average hourly earnings including both standard pay rate, tips and other forms of compensation.

Secretary of Labor Hilda Solis reported that this incident should serve as a reminder to all restaurants that the WHD is actively investigating restaurants to ensure employees receive the wages they have rightfully earned. 

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