DOL on the lookout for businesses that don't pay back wages
The U.S. Department of Labor recently followed up with The Metropolis Diner in Medford, New York to ensure the restaurant issued employees checks for the back wages they were owed, but found it had disregarded the settlement.
In 2010, the Wage and Hour Division investigated the employer and discovered it was not properly paying workers for their time attendance. Some workers allegedly worked up to 50 hours a week without receiving premium compensation guaranteed under the Fair Labor Standards Act (FLSA). All non-exempt workers, including tipped employees are owed time-and-a-half rates if they work more than 40 hours, according to federal labor rights laws.
The diner agreed to settle the suit by paying 18 employees $43,971 in back wages. When the DOL followed up, however, it found the business had forced workers to return a portion of the payments. Now, the restaurant is facing additional penalties, totaling $7,068 and has agreed to pay employees $60,535.
Employers may be tempted to deny workers overtime wages to cut back on payroll, but this may be an expensive mistake. Remaining in compliance and using a robust payroll processing system can help the company avoid costly lawsuits that could also damage the business' reputation.
In 2010, the Wage and Hour Division investigated the employer and discovered it was not properly paying workers for their time attendance. Some workers allegedly worked up to 50 hours a week without receiving premium compensation guaranteed under the Fair Labor Standards Act (FLSA). All non-exempt workers, including tipped employees are owed time-and-a-half rates if they work more than 40 hours, according to federal labor rights laws.
The diner agreed to settle the suit by paying 18 employees $43,971 in back wages. When the DOL followed up, however, it found the business had forced workers to return a portion of the payments. Now, the restaurant is facing additional penalties, totaling $7,068 and has agreed to pay employees $60,535.
Employers may be tempted to deny workers overtime wages to cut back on payroll, but this may be an expensive mistake. Remaining in compliance and using a robust payroll processing system can help the company avoid costly lawsuits that could also damage the business' reputation.
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