Recently, the U.S. Department of Labor allegedly found that the owner of Taqueria El Molino in Walnut Creek, California, unlawfully failed to pay employees overtime for working more than 40 hours in a week. Instead of paying time-and-a-half for overtime hours, the employer paid regular rate wages in cash for those hours, which violates the Fair Labor Standards Act. The regular rate payments were illegal, not the cash payments. The investigation started after a tip to the Employment, Education and Outreach (Empleo) helpline, which helps workers understand their rights.
The Wage and Hour Division recovered $22,866 in unpaid overtime and minimum wages for 14 employees. Additionally, the Division also recovered $22,866 in liquidated damages because of the violations. Finally, the Division assessed the restaurant owner $2,581 in civil penalties for knowingly breaking the law.
(See Link(s): 29 U.S.C. Section 207)