A recent investigation by the U.S. Department of Labor's Wage and Hour Division revealed El Tequila restaurant owner Carlos Aguirre is accused of not properly paying employees at three locations across Tulsa, Oklahoma, and is allegedly expected to pay approximately $1 million for lost wages. According to the division's findings, 221 employees were not receiving the wages they were owed because their employer was violating the Fair Labor Standards Act (FLSA) overtime, minimum wage and recordkeeping provisions.
In this case, El Tequila kitchen staff employees claim they were paid a salary instead of hourly wages and were denied overtime remuneration even though they sometimes worked at many as 72 hours during a single pay period. Although some chefs are considered exempt as professional employees, most cooks and other kitchen staff members are not. Therefore, they must receive one-and-a-half times their standard hourly earnings for any
employee attendance that exceeds 40 hours in a week.
"The restaurant industry employs some of our country's lowest-paid, most vulnerable workers," said Secretary of Labor Hilda Solis. "When violations of the FLSA are discovered, the Labor Department will take appropriate action to ensure workers receive the wages they have earned and to which they are legally entitled."
Restaurant owners can ensure their payroll practices are in compliance by installing an advanced timekeeping system that calculates the correct wages for each position in the business.
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