A chain of five Japanese restaurants in Suffolk and Nassau counties, New York, were ordered to pay $764,796 following a lawsuit filed by the U.S. Department of Labor.
Owner Wen Chun Su agreed to pay back wages, liquidated damages and interest to 161 employees involved in the litigation. The Long Island District Office of the Department of Labor's Wage and Hour Division found Su in violation of Fair Labor Standards Act (FLSA) minimum wage, overtime pay and recordkeeping provisions.
The investigation revealed an illegal arrangement in which both tipped and nontipped employees were splitting gratuity and that Su was not paying workers minimum wage and overtime pay. Investigators also found that the restaurants were not keeping accurate payroll records of
employee attendance.
"Our goal is to change the behavior among violators so that workers will receive their just wages, and law-abiding employers will be able to compete on a level playing field … Other restaurants should take notice and ensure that they are paying their employees in compliance with the FLSA."
Restaurants can avoid FLSA violations by strictly adhering to the minimum wage and overtime measures. Owners can install a
timeclock to track employees' work hours more accurately and implement better recordkeeping policies.
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