HONOLULU –The U.S. Department of Labor recovered $62,908 in back wages and liquidated damages for 42 workers after an investigation found the operators of five Hawaii restaurants denied them overtime pay and allowed a manager and other employees to take a portion of the workers’ tips illegally.
Investigators with department’s Wage and Hour Division found Elizabeth Diaz and Antonio Aguilar Aguirre – joint owners of four Pacos Tacos Cantina and Lunch Wagon restaurants on Kauai, and one on Oahu – owed workers $12,682 in overtime wages earned for hours worked over 40 in a work week. Diaz and Aguirre also permitted a manager and others at the restaurants to take as much as $18,771 from tips earned by the workers. Both actions violated the Fair Labor Standards Act.
Federal law forbids an employer from keeping workers’ tips and prohibits managers and supervisors from taking tips employees receive, including through tip pools. These restrictions apply even if the employer pays tipped workers hourly rates equal to, or above the full minimum wage.
In addition to the recovery of back wages and liquidated damages, the division assessed $10,000 in civil money penalties due to the nature of the employers’ violations.
“Just as there are required quality standards for the food we consume at restaurants, there are also federal labor standards for workers in this industry. Federal laws require overtime pay for hours worked in excess of 40 in a workweek and that tipped employees retain the...
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