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DOL Wage and Hour Lawsuit Settlement Brings $420K in Back Wages to WA Restaurant Workers

January 31, 2011

In a recent California Employment Lawyers blog, our attorneys based in Riverside, California discussed a wage theft report in San Francisco, which found that out of 400 restaurant workers in San Francisco's Chinatown, over half of the workers made less than minimum wage.

In related news, U.S. Department of Labor reported last week that two restaurants in Washington State have agreed to settle a lawsuit filed by the DOL, after the restaurants were accused of violating the Fair Labor Standards Act by failing to pay workers minimum wage and overtime.

Super China Buffet and King Buffet will reportedly pay 83 workers $420,000 in back wages and liquidated damages, after a DOL investigation found that some restaurant waitstaff were only paid $10 per day--far below the federal minimum wage of $7.25 per hour. The kitchen staff was reportedly only paid a straight monthly salary with no overtime compensation, even when working beyond 40 hours in a workweek. The investigation also found that the employers often paid employees in cash and did not keep accurate time and payroll records, a violation of the FLSA.

As our Carson employment attorneys have reported recently in a blog post, the FLSA requires that employees covered by the act are paid $7.25 per hour. For employees who regularly receive over $30 a month in tips, employers may pay a base rate of $2.13 per hour in direct wages if the tips cover the pay difference. In overtime compensation, the FLSA requires that covered employees are paid one and one-half their regular compensation rates for all hours worked beyond forty in a week of work. Employees are also required under the FLSA to maintain accurate time and payroll records.

If you or someone you know in Orange County, California have experienced violations of the Fair Labor Standards Act, as well as California Labor Codes, contact our employment attorneys at Howard Law, PC today for a free consultation about your labor and employment rights.

US Labor Department recovers back wages, liquidated damages for underpaid Washington state restaurant workers, U.S. Department of Labor Wage and Hour Division Press Release, January 24, 2011

Related Web Resources:

Department of Labor (DOL): Wage and Hour Division (WHD)