Los Lomas Mexican Restaurant pays $60,000 in back wages
Los Lomas Mexican Restaurant in Muscatine, Iowa was recently investigated the Department of Labor's (DOL) Wage and Hour Division. Investigators discovered the restaurant's payroll practices were violating the Fair Labor Standards Act (FLSA) minimum wage and overtime provisions.
"Some of these employees were paid as little as $200 a week for 75 hours of labor," said Michael Staebell, director of the Wage and Hour Division’s Des Moines office.
As a result of the violations, Los Lamos paid eight workers $60,234 in back wages to compensate them past time attendance. The FLSA establishes that all covered, nonexempt employees earn at least $7.25 per hour and time-and-a-half rates for overtime. The restaurant industry can present compliance challenges because some workers are exempt as tipped employees, but this can leave employers vulnerable to violations that can result in penalties.
"We are committed to protecting the many vulnerable workers employed in the restaurant industry and, as demonstrated by the resolution of this case, will vigorously pursue violators to ensure compliance with the law," Staebell added.
Restaurants can invest in an advanced timekeeping system that includes both a timeclock to track employee attendance and a payroll processing program that can accurately calculate various pay rates.
"Some of these employees were paid as little as $200 a week for 75 hours of labor," said Michael Staebell, director of the Wage and Hour Division’s Des Moines office.
As a result of the violations, Los Lamos paid eight workers $60,234 in back wages to compensate them past time attendance. The FLSA establishes that all covered, nonexempt employees earn at least $7.25 per hour and time-and-a-half rates for overtime. The restaurant industry can present compliance challenges because some workers are exempt as tipped employees, but this can leave employers vulnerable to violations that can result in penalties.
"We are committed to protecting the many vulnerable workers employed in the restaurant industry and, as demonstrated by the resolution of this case, will vigorously pursue violators to ensure compliance with the law," Staebell added.
Restaurants can invest in an advanced timekeeping system that includes both a timeclock to track employee attendance and a payroll processing program that can accurately calculate various pay rates.
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