South Carolina restaurant to pay back wages to servers, kitchen staff
A recent investigation by the Department of Labor's Wage and Hour Division revealed four restaurants in Columbia, South Carolina, were not properly paying employees the wages they were owed, resulting in violations of the Fair Labor Standards Act (FLSA). To recover earnings that fell below minimum wage, the restaurants - Pancho's Mexican Restaurant I, II and III and Papa's and Beer Mexican Restaurant - have agreed to pay employees $485,913 in back wages.
The investigation revealed that all the restaurants, servers were paid primarily with tips, and did not receive enough compensation to make minimum wage between those earnings and their hourly of $2.13. Moreover, kitchen staff members were paid a flat salary rate without overtime even though they didn't qualify for an exemption from the FLSA.
"We found many low-wage employees working up to 65 hours a week without any overtime compensation and receiving pay below the federal minimum wage. Unfortunately, significant labor violations like the ones we found in this case are all too common in the restaurant industry," said Michelle Garvey, director of the division's Columbia office.
Restaurants can make sure they are properly paying employees by keeping up with the FLSA and installing the necessary payroll processing equipment, such as timeclocks.
The investigation revealed that all the restaurants, servers were paid primarily with tips, and did not receive enough compensation to make minimum wage between those earnings and their hourly of $2.13. Moreover, kitchen staff members were paid a flat salary rate without overtime even though they didn't qualify for an exemption from the FLSA.
"We found many low-wage employees working up to 65 hours a week without any overtime compensation and receiving pay below the federal minimum wage. Unfortunately, significant labor violations like the ones we found in this case are all too common in the restaurant industry," said Michelle Garvey, director of the division's Columbia office.
Restaurants can make sure they are properly paying employees by keeping up with the FLSA and installing the necessary payroll processing equipment, such as timeclocks.
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