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Friday, April 17, 2026

Dairy Queen operator ordered to pay managers retroactively for overtime - San Antonio Report

The local operator of 19 Dairy Queen locations in the San Antonio area violated U.S. labor law and must pay more than $350,000 in back wages and interest, a federal court has ruled.

R&S Dairy Queens, based out of New Braunfels, failed to pay overtime wages to salaried managers and failed to provide a last paycheck to some, according to the findings of a U.S Department of Labor investigation that were affirmed by the federal court in San Antonio. The issues affected 31 managers.

R&S had classified managers as salaried workers exempt from overtime pay. But the Labor Department found that R&S’ salary for these workers was not high enough to exempt them from the overtime pay required by the Fair Labor Standards Act (FLSA). Overtime pay is legally set as at least one and a half times normal wages for every work hour in a week above 40 hours.

“Employers cannot avoid overtime requirements by simply giving an employee a title and paying them a salary,” said Wage and Hour District Director Cynthia Ramos in San Antonio in a prepared statement. “Most employees — even those paid a fixed salary or flat amount per day or shift — are entitled to overtime unless specific FLSA requirements are met. We encourage other employers to review their pay practices, and to contact us with questions to avoid similar violations.”

The U.S. District Court for the Western District of Texas in San Antonio ordered R&S in a consent judgment to pay $358,200 in back wages and interest to the...



Read Full Story: https://sanantonioreport.org/dairy-queen-salary-overtime/