DINER TO PAY $154K IN BACK WAGES TO 59 EMPLOYEES AFTER US DEPARTMENT OF LABOR INVESTIGATION

By November 29, 2016HR
Metro Diner failed to pay proper minimum wage, overtime

 

Investigation findings: An investigation by the U.S. Department of Labor’s Wage and Hour Division’s Jacksonville District Office found that Windy City Doc Holding LLC, doing business as Metro Diner, violated minimum wage and overtime provisions of the Fair Labor Standards Act.

Specifically, the employer made illegal deductions from workers’ pay when it charged servers for their uniforms – that resulted in them earning less than the legally required federal minimum wage of $7.25 per hour in the weeks that they paid for those items. The employer’s practice of sharing the tips of tipped employees with non-tipped workers, such as dishwashers, also contributed to the minimum wage violations for affected servers.

The employer also calculated overtime incorrectly when it based servers’ overtime rates on time and a half of their direct cash wages, rather than basing it on the full minimum wage, as required.

Resolution: The employer will comply with the FLSA and pay 59 employees $154,179 in back wages.

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