El Paso restaurants ordered to pay nearly $73,000 in back wages
Two Vivar’s Villa Del Mar restaurants in El Paso, Texas have been investigated by the Department of Labor's Wage and Hour Division and found to be in violation of the Fair Labor Standards Act (FLSA) overtime, minimum wage and recordkeeping provisions.
The DOL found the employer of the two locations was not making up the difference between servers' tips and minimum wage. Under the FLSA, tipped employees are exempt from minimum wage provisions that apply to most hourly workers; i.e. employers are only obligated to pay them $2.13 per hour if their earned gratuity brings their total wages up to an average $7.25 hourly rate. If their tips are less than that, the employer must make up the difference.
In addition, the investigation revealed the business failed to keep accurate records of employee attendance, and did not pay one worker for overtime because his time attendance was split between roles as a server and busser.
"Investigators found illegal and exploitative practices that deprived workers of the wages they rightfully earned," said Cynthia Watson, regional administrator of the Wage and Hour Division in the Southwest. "The department is committed to ensuring that all workers are fully paid for every hour they spend on the job and employers comply with the FLSA."
Employers that need to bring their practices up to compliance might consider installing a new payroll processing system that can automatically calculate the correct rates for various employees.
The DOL found the employer of the two locations was not making up the difference between servers' tips and minimum wage. Under the FLSA, tipped employees are exempt from minimum wage provisions that apply to most hourly workers; i.e. employers are only obligated to pay them $2.13 per hour if their earned gratuity brings their total wages up to an average $7.25 hourly rate. If their tips are less than that, the employer must make up the difference.
In addition, the investigation revealed the business failed to keep accurate records of employee attendance, and did not pay one worker for overtime because his time attendance was split between roles as a server and busser.
"Investigators found illegal and exploitative practices that deprived workers of the wages they rightfully earned," said Cynthia Watson, regional administrator of the Wage and Hour Division in the Southwest. "The department is committed to ensuring that all workers are fully paid for every hour they spend on the job and employers comply with the FLSA."
Employers that need to bring their practices up to compliance might consider installing a new payroll processing system that can automatically calculate the correct rates for various employees.
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