U.S. Department of Labor’s Wage and Hour Division has cracked down on a Chattanooga restaurant for violations under the Fair Labor Standards Act.
Chattanooga Restaurant Group LLC, operating as City Café Diner, is required to pay $153,740 in back wages and liquidated damages to 46 employees for violating the overtime and recordkeeping requirements, a press release Thursday states.
WHD investigators found the restaurant paid some employees, including cooks, dishwashers and bussers, flat salaries each workweek without regard to the number of hours they actually worked. This practice resulted in overtime violations when those employees worked more than 40 hours in a workweek yet were not paid overtime.
The City Café Diner also failed to maintain records of the number of hours these employees worked each week, violating FLSA recordkeeping requirements, the release states.
“Paying a set salary does not excuse employers from having to pay overtime when employees work more than 40 hours per week,” said Wage and Hour Division District Director Nettie Lewis, in Nashville. “Employers must review their legal obligations and contact the Wage and Hour Division for compliance assistance. Violations like those in this case can be avoided.”