The U.S. Department of Labor’s Wage and Hour Division recovered $17,311 in back wages and assessed civil penalties against a Rowland Heights, California restaurant after finding multiple violations of the Fair Labor Standards Act, according to a Dec. 19 press release from the agency.
The investigation found that Naya Ding Inc., doing business as Ma’s Kitchen, failed to pay proper overtime compensation and operated an unlawful tip pool that allowed owners to retain a portion of tips earned by employees. Investigators determined that the restaurant directed supervisors to distribute only a portion of tips earned by servers while the owners retained a share.
In addition to back wages for nine affected employees, the employer was assessed a $2,985 civil money penalty for willful violations of federal wage laws.
The investigation also revealed failures in required recordkeeping. Specifically, the employer didn’t maintain accurate records of hours worked, tips received, and cash payments to employees, another core requirement under the FLSA.
“Burdening employees with business expenses takes hard-earned wages out of workers’ pockets,” said Wage and Hour Division Assistant District Director Rafael Valles in West Covina, California. “That’s why the U.S. Department of Labor is committed to ensuring employers pay workers their fully earned wages in compliance with federal law, and its Wage and Hour Division will use every enforcement tool...
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