Restaurants in Dayton, OH accused of FLSA violations

The U.S. Department of Labor (DOL) recently investigated the payroll practices at three Ohio restaurants operating as El Rancho Grande and Gran Fiesta. After finding the businesses' employer was not properly paying employees for their time and attendance, the DOL's Wage and Hour Division is seeking an estimated $285,000 in back wages for 171 employees.

Specifically, the government agency found servers at the restaurants were not being paid for all of their hours worked, including time spent performing tasks before and after scheduled shifts - a practice that was seen prevalently among staff members with limited English skills. Additionally, the restaurants were allegedly paying kitchen staff members flat salary rates for all of their employee attendance without extra wages for overtime even though they don't qualify for an exemption from the Fair Labor Standards Act.

"Low-wage workers such as restaurant servers and kitchen staff are far too often taken advantage of because they are reluctant to question employers about their pay and benefits," said George Victory, the Columbus, Ohio Wage and Hour Division district director.

Employers can ensure they are properly compensating workers by installing payroll processing systems that accurately track employees' work time and calculate the correct wage totals. This can also help businesses comply with recordkeeping standards.