In the case of Pizzella v. Cilantros Mexican Bar & Grill, LLC., Patrick Pizzella, Acting Secretary of Labor for the United States Department of Labor, filed an amended complaint against Cilantros Mexican Bar & Grill, LLC, Managua, LLC, and Alegria LLC (collectively referred to as “Defendants”). The complaint alleges that the Defendants violated the Fair Labor Standards Act (FLSA) provisions.
The court issued a judgment without contest, permanently enjoining and restraining the Defendants from violating the mentioned provisions of the FLSA. The judgment included requirements for the Defendants to pay their employees who were engaged in commerce or the production of goods for commerce at the applicable minimum wage rates and to compensate employees at a rate of 1.5 for every overtime hour worked. The judgment also instructs the Defendants to maintain accurate records of employees’ hours and wages and to categorize employees as exempt from overtime and minimum wage requirements only if they meet the specified exemption criteria.
Additionally, the judgment imposes financial obligations on the Defendants. They were ordered to pay a sum of $19,247.55, which represented the alleged unpaid minimum wages and overtime compensation for specific employees listed in Exhibit A (refer to the case). The payment should be made to the United States Department of Labor. Furthermore, the Defendants are required to pay an FLSA Civil Money Penalty of $1,750.00.
The judgment also imposed various measures, which included the prohibition of coercion or solicitation of employees to return or offer money previously due to them. The Defendants were also required to ensure proper compensation for all work and maintain accurate records. As extra safety measures, they must post FLSA Minimum Wage posters at their establishments, and provide employees with reference guides and fact sheets related to the FLSA.
Key lessons from this case:
- Employees involved in commerce businesses are still subject to the overtime pay provisions of the FLSA.
- The Department of Labor has the authority to initiate a lawsuit on behalf of employees against an employer who is found to be violating overtime laws.
- Employers may be required to implement enhanced compliance measures, such as accurate recordkeeping, displaying labor law posters, and providing educational materials on the FLSA to employees.
If you want to know more about overtime regulations, read our guide on Nebraska Overtime Laws.
