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TN Restaurant Settles a WHD investigation for $85k

2011-02-04

The Mandarin House restaurant in Knoxville, TX has agreed to pay $85,000 in back wages to nine employees plus pay a fine of $1,540 for a repeat violation of the Fair Labor Standards Act (FLSA).  The Department of Labor Wage and Hour Division (WHD) found that the restaurant had failed to pay the workers minimum wage and overtime pay as required by the FLSA. 

The cooks in the restaurant worked an overage of 66 hours per week with wages that were as low as $3.50 per hour with no overtime for hours exceeding 40 hours in a workweek.  One cook earned a salary to cover minimum wage but did not receive overtime.  Several waitresses did not receive proper cash wages and the restaurant also failed to keep accurate time and attendance records.

Since this is the second investigation in which the Mandarin House was found in violation of the FLSA, they were also fined $1,540.

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 rate of pay, including commissions, bonuses and incentive pay, for hours worked beyond 40 per week.  Employers are required to keep accurate records for all hours worked by covered employees.