Restaurant Owner Violates OT Laws by Forcing Servers to Return Wages

An investigation by the U.S. Department of Labor into wage violations at Los Mariachis found that restaurant owner Ruben Lopez and his restaurant Los Mariachis, LLC forced servers to give back their wages in cash after receiving their paychecks. They were forced to only keep the tips they earned plus $20 in cash for every 2-week period.

Besides that, the cooks there were paid a straight salary for the 60-hour week they had worked, with no overtime rate calculation included. These actions taken by the employer are in serious violation of the Fair Labor Standards Act (FLSA). Not only that, but the employer did not keep accurate records of the hours worked by employees as well as payroll information as the law would require.

The DOL managed to recover $245,509 in back wages for the servers and cooks who were mistreated at the restaurant. The owner also complied with the federal wage laws immediately.

Key lessons from this case:
  • It is important to know that an employer cannot force an employee to return the wages they receive. This is illegal and should be reported immediately.
  • As the restaurant owner did, employers should rectify any violations caused by immediately complying with the wage laws and ensuring proper compensation is made.
  • Servers and cooks are among those who are non-exempt. This means they are entitled to overtime pay.

Learn more about Ohio Overtime Laws through our detailed guide.

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