DOL’s Wage and Hour Division (WHD) has fined a Houston, Texas business $285,000 in back wages and overtime for letting workers at its three restaurants work 91-hour weeks without getting overtime in violation of the Fair Labor Standards Act (FLSA).
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Get Your Report Now!After interviewing numerous employees at Ernesto Enterprises Corp. and Jonathan Enterprises Corp., doing business as Taconmadre Mariachi & Grill,, iinvestigators from the WHD’s Houston District Office determined that workers were improperly classified as exempt from the FLSA, received salaries that did not yield the minimum wage and were not paid overtime wages for hours worked beyond 40 in a week, according to a DOL press release.
Investigators also found illegal deductions for uniforms and lost items were taken from employees’ paychecks, and the companies did not maintain all required records.
“This employer took advantage of vulnerable workers by failing to pay them the federal minimum wage,” said Cynthia Watson, regional administrator for the Wage and Hour Division in the Southwest. “And employees worked up to 91 hours in a week without overtime compensation. These practices are illegal and unacceptable.”
The press release stated that the company cooperated with the investigation and have agreed to pay all back wages due and fully comply with the FLSA in the future.
The FLSA requires that covered employees be paid at least the federal minimum wage of $7.25 for all hours worked, plus time and one-half their regular rates of pay, including commissions, bonuses and incentive pay, for hours worked beyond 40 per week. Employers also must maintain accurate time and payroll records.