bake - February 2013 - 16

labor front

Wage Compliance Crackdown
Increasing numbers of crackdowns are taking place against

Defendants Asian Moon Restaurant of Massapequa Park Inc.,

food establishments that fail to pay federal minimum wage to

Asian Moon Restaurant Corp. in Garden City, Golden Rod

all employees, especially part-time workers.

Restaurant Corp. in New Rochelle and Vickie Sue Li will pay
$98,231 in civil money penalties and interest for violations

In New York, a chain of three full-service restaurants in Nassau

of the federal FLSA’s minimum wage, overtime and record-

and Westchester counties and its president will pay $1.1

keeping provisions.

million in back wages, interest and liquidated damages to 255
employees, according to the terms of consent judgments by

Investigators from the division’s Long Island and White Plains

the US Department of Labor.

offices found that employees working as servers and kitchen
staff at all three locations were paid

The Fair Labor Standards Act (FLSA)

wages that did not equal at least the

requires that covered, nonexempt

hourly minimum wage and did not include

employees be paid at least the federal

proper compensation for overtime hours

minimum wage of $7.25 per hour, as well

worked beyond 40 in a week. In addi-

as one and one-half times their regular

tion, the defendants maintained false and

rates for every hour they work beyond 40

incomplete records of employees’ pay

per week. The law also requires employers

rates and hours worked.

to maintain accurate records of employees’
wages, hours and other conditions of

In Oklahoma, a similar investigation

employment, and prohibits employers

resulted in Peyton’s Place LLC in Duncan

from retaliating against employees who

agreeing to pay $84,864 in back wages

exercise their rights under the law.

to 31 current and former servers following
an investigation by the US Department of

In accordance with the FLSA, an employer

Labor’s Wage and Hour Division, which

of a tipped employee is required to pay

found violations of the minimum wage and

no less than $2.13 per hour in direct

record-keeping provisions of the FLSA.

wages, provided that amount plus the
tips received equals at least the federal

An investigation by the division’s

minimum wage of $7.25 an hour. If an

Oklahoma City District Office found

employee’s tips combined with the

the employer failed to pay servers the

employer’s direct wages do not equal the

required minimum wage of $2.13 per

minimum wage, the employer must make

hour for tipped employees, and instead

up the difference.

required them to work only for tips. The
company also failed to maintain records of the numbers of

Employers also are required to provide employees notice of the

hours worked by employees. Additionally, the employer failed

FLSA tip credit provisions and to maintain accurate time and

to maintain records of dates of birth for workers under 18 years

payroll records.

old, as required by the FLSA.

Additionally, deductions from an employee’s pay for customer

“Restaurant workers are among the most vulnerable in the work

walkouts, breakage or cash register shortages are illegal if they

force,” says Cynthia Watson, regional administrator for the Wage

reduce the employee’s wages below the minimum wage.

and Hour Division in the Southwest. “When an employer violates
the FLSA, the Labor Department will not hesitate to take appro-

Nonexempt employees must be paid at least the minimum

priate action to ensure workers receive the wages they have

wage determined by the US Congress or the states in which

earned, and that employers who play by the rules do not operate

they work, whichever is higher.

at a competitive disadvantage to those who do not.”

16 < FEB 2013 | bakemag.com
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bake - February 2013

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