The U.S. Department of Labor has filed a suit in federal court in Wichita against the owners of Mr. Cao’s restaurant in Hutchinson and Daimaru Steakhouse in Salina for alleged violations of the Fair Labor Standards Act related to tips, overtime and sick leave.
The suit is seeking damages of at least $783,000.
Calling the company’s actions “willful” and citing a similar suit it settled with the Salina restaurant in 2016, the federal agency is also seeking liquidated damages and a permanent injunction against the business and its owner and manager, Jason Cao.
It’s unclear if the liquidated damages are part of the amount listed.
Jason Cao declined to comment.
The allegations involve an investigation into employment and pay practices at Mr. Cao’s from July 29, 2018, through July 25, 2020, and at Daimaru in Salina from Sept. 3, 2018, through Aug. 30, 2020, according to the suit filed July 28.
Among violations listed are that the company withheld tips from employees, illegally pooled tips and distributed some of them to management, and paid some employees less than minimum wage.
It also alleges the company failed to pay overtime, violated child labor laws with underage employment, and violated the Families First Coronavirus Response Act by refusing to pay sick leave to at least one couple in Salina required to quarantine with COVID-19.
Jason Cao, 43, opened the Daimaru Steakhouse after moving to Salina in 1999, and he opened Mr. Cao’s at 1505 E. 17th Ave. in Hutchinson in July...
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