Mugen Inc. also allowed 15-year-old employees to work for longer periods than law permits
GOLDSBORO, NC – A federal investigation has recovered $157,287 in back wages for 65 workers after finding that a Goldsboro-based restaurant’s pay practices denied the workers their full wages by keeping portions of their earned tips.
The U.S. Department of Labor’s Wage and Hour Division determined that Mugen Inc. – operating as Jay’s Kitchen – kept a percentage of their employees’ tips, a minimum wage violation of the Fair Labor Standards Act. By doing so, the employer lost their right to claim a tip credit and owed the workers the difference between their paid cash wage and the federal minimum wage. Investigators also found Mugen Inc. failed to keep an accurate record of hours worked, provide the dates of birth for employees under the age of 19 and keep addresses for several employees, all FLSA recordkeeping violations.
Investigators also found that Mugen Inc. allowed three, 15-year-old employees to work outside of permitted hours while school is in session, a violation of federal child labor laws. The employees worked more than 3 hours on a school day, more than 18 hours in a school week and past 7 p.m. while school was in session. The division assessed a $1,915 civil money penalty to address the violation.
“Tipped workers in the food services industry rely on their hard-earned tips to make ends meet. Tips are the property of the worker and, under no circumstances, may employers...
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