Two restaurants in Hampshire are having to pay $890,196 – $445,085 in back wages to 63 employees to resolve several violations of the Fair Labor Standards Act (FLSA). The restaurants must also pay an equal amount in liquidated damages.
The agreement was made following a US Department of Labor investigation and litigation. The investigation carried out by the Wage and Hour Division found that La Carreta in Derry and La Carreta in Londonderry, both operating under La Carreta Mexican Restaurant, violated the FLSA’s requirements for minimum wage, overtime, and recordkeeping.
The story highlights how important it is that small businesses adhere to the Fair Labor Standards Act and pay all employees correctly and fairly. Violating the law set by the Department of Labor, can not only lead to hefty fines, but also significant damage in reputation. The case confirms how imperative it is that small business owners understand the FLSA’s requirements.
Wage and Hour Division District Director Steven McKinney in Manchester, New Hampshire, commented on the case and the importance of paying workers fairly:
“Paying restaurant workers straight-time for their overtime hours and requiring servers to work for tips only with no cash wages is quite simply wage theft.
“While we often find such violations in the restaurant industry, these violations can easily be prevented if employers...
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