Restaurant Settles Wage and Hour Case for $150,000; Training Required

 
Thursday, November 16, 2017
 
The U.S. Department of Labor’s Wage and Hour Division and a Blue Springs buffet restaurant have reached an agreement to resolve violations of the Fair Labor Standards Act (FLSA). The Wage and Hour Division determined Blue Springs-based Legend of Asia and its manager, Yu Min Xiao, failed to comply with FLSA minimum wage, overtime, and record-keeping provisions.

As a result, 17 workers will receive a total of $150,000 – representing $75,000 in back wages and an equal amount in liquidated damages. The restaurant will also pay a civil money penalty of $10,000 for willful violations.

Investigators found the employer paid cooks a monthly salary and provided them housing, meals, and transportation. Given the number of hours the restaurant required cooks to work, their compensation did not equal at least the minimum wage, and overtime was not paid when they worked more than 40 hours in a workweek. The employer also failed to pay servers overtime.

Under terms of a consent judgment, entered in the U.S. District Court for the Western District of Missouri, Legend of Asia will implement a computerized time-keeping system; have a third party audit its time and payroll practices for compliance; provide payroll statements to employees that clearly articulate the amount earned, as well as deductions for items provided such as housing and food; and provide training and notices to all employees regarding the requirements of the FLSA.
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