Indiana Restaurant Operator to Pay $317,108 in Back Wages to Employees

After an investigation conducted by the U.S. Department of Labor’s Wage and Hour Division (“WHD”), Los Tequila Inc., operator of Los Tres Caminos restaurant in Evansville, Indiana will have to pay $317,108.00 in minimum wage and overtime back wages to 21 employees, in violation of the Fair Labor Standards Act (“FLSA”).

WHD investigators concluded that Los Tequila Inc. compensated their servers for the first forty hours worked per week yet failed to pay them any wages for any hours they worked in excess of forty per week.  Additionally, WHD investigators discovered that Los Tequila, Inc. paid kitchen workers a flat weekly salary, regardless of the number of hours they worked, including those worked in excess of forty per week, collectively in violation of the FLSA.  Moreover, due to the repeated nature of these wage violations, Los Tequila, Inc. will have to pay an additional $18,291.00 in civil penalties.

“Employers must ensure their employees receive all wages they are legally due, and they must not violate federal wage laws in an attempt to gain an unfair competitive advantage over those employers that abide by the law,”[i] said Patricia Lewis, Wage and Hour Division District Director in Indianapolis, Indiana.  “Other employers in this industry should use the resolution of this case as an opportunity to review their own pay practices to ensure they comply with the law and avoid costly violations like those in this case.”[ii]

The WHD enforces established minimum wage, overtime pay, recordkeeping, and the youth employment requirements under the FLSA.  Under the FLSA, covered nonexempt employees are entitled to a minimum wage rate of no less than $7.25 per hour.  An employer must pay nonexempt employees overtime pay at a rate no less than one and one-half times the applicable minimum wage rate as overtime wages for all hours worked in excess of forty in a workweek.[iii]

Thankfully, the U.S. Department of Labor provides numerous resources to employers to ensure they comply with federal wage laws.  Employers have access to online videos as well as a toll-free helpline, (866)-487-9243.  If an employer discovers they are in violation of federal law, they may also self-report and resolve their wage violations with the U.S. Department of Labor, thus avoiding costly litigation.  Moreover, employers in the state of New York should also take steps to comply with accompanying wage and employment provisions of the New York Labor Law (“NYLL”) and/or the N.Y. Comp. Codes R. & Regs. (“NYCRR”).  Employers who fail to do so may find themselves in violation of both state and federal law.  In cases where an employee is subject to both federal and state minimum wage laws, the employee is entitled to the higher minimum wage.

If you believe that you’re a covered employee and your employer is refusing to pay you the applicable minimum wage for all hours worked, and/or refusing to pay you one and one-half times the applicable minimum wage as overtime rates for all hours worked in excess of forty in a workweek, contact Borrelli & Associates, P.L.L.C to schedule a free consultation through one of our websites, www.employmentlawyernewyork.com, www.516abogado.com, or any of our phone numbers: (516) 248-5550, (516) ABOGADO, or (212) 679-5000.

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[i] https://www.dol.gov/newsroom/releases/whd/whd20201222-2

[ii] https://www.dol.gov/newsroom/releases/whd/whd20201222-2

[iii] https://www.dol.gov/agencies/whd/flsa