The U.S. Department of Labor filed a lawsuit against Arriaga Inc. for violating federal time and attendance policies.
Restaurant manager Luis Arriaga and officer Martin Arriaga, both of whom operate the restaurant Señor Pancho's, have been charged with violations of the Fair Labor Standards Act's overtime, minimum wage, and record-keeping provisions, according to the Ohio newspaper Norwalk Reflector. The Wage and Hour Division of the DOL seek nearly $275,000 in back pay for 34 employees of the restaurant, as well as liquidated damages.
The lawsuit claimed the employer regularly allowed workers' paychecks to bounce in addition to incorrectly categorizing staff as exempt workers. Officials involved in the investigation discovered restaurant employees who received tips were often paid below the federal standard for minimum wage - in effect, forcing them to live of gratuity.
George Victory, the Wage and Hour district director in Columbus, explained the restaurant owners demonstrated little concern over the well-being of their employees, and the lawsuit is aimed at those willing to sacrifice their employee's financial security in an effort to gain a competitive financial advantage. As a result of the suit, one of the Señor Pancho's locations is under new management.
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