Investigations by the department's Wage and Hour Division found that employees of the following restaurants were not properly compensated for all work hours: Alibi Bar & Lounge; Back Bay Social Club; Bleacher Bar; The Estate; Game On; Harvard Gardens; Kings Boston; Kings Dedham; La Verdad; The Lansdowne Pub; Lucky's Lounge; Scampo; Sonsie; Sweetwater Café; and Towne Stove & Spirits. Many of these employees were paid straight time wages rather than time and one-half their regular rates of pay for hours worked in excess of 40 in a workweek, as required by the FLSA. The bulk of the underpayments affected Lyons Group kitchen staff, who were paid by Superbrite Professional Cleaning, a separate company, later known as Excel Management.
"Utilizing contract labor providers does not absolve employers from their responsibility of complying with the FLSA and paying workers the wages they are legally due," said George Rioux, district director for the Wage and Hour Division in Boston. "The use of contract labor providers in the restaurant industry has increased over the past several years, along with violations. Employers have a choice. Put these workers on payroll or ensure their labor providers are paying their employees in compliance with the FLSA."
"Employers should be aware that, as a general rule, they will pay twice when they underpay their employees. The department will seek not only the back wages due the workers, but an equal amount in liquidated damages on their behalf," said Michael Felsen, the department's regional solicitor for New England, whose office negotiated the settlements. "The time has come for the restaurant industry in Massachusetts to address this issue seriously. Underpaying employees not only hurts workers, it undercuts those employers who have chosen to obey the law in the first place."
As part of enhanced settlement agreements reached with the department, the Lyons Group will audit each restaurant's current compliance with the FLSA and take other steps to prevent violations. This will include developing and implementing a software program designed to detect employees who work in two or more of the restaurants during the same workweek.
The investigations were conducted under the division's multiyear enforcement initiative focused on the restaurant industry in Massachusetts, where widespread noncompliance with the FLSA's minimum wage, overtime and record-keeping provisions has been found.
To read the full article click here
Source: DOL
This information is intended to be
educational and should not be considered legal advice on any specific matter.
