Hey Complaince Warriors!
Check out this new release about the trouble a Chicago restaurant is in after a department of labor investigation. Read on to see how costly not being compliant can actually be…
Article via https://www.dol.gov
“Fabulous Freddies Italian Eatery, a restaurant in Chicago’s South Loop, and one of its named owners, Stephanie Fitzpatrick, have paid 58 employees a total of $339,418 in unpaid wages and damages in a consent judgment following a U.S. Department of Labor Wage and Hour Division investigation.
Division investigators found the restaurant and Fitzpatrick failed to comply with the Fair Labor Standards Act’s (FLSA) minimum wage, overtime, and recording-keeping provisions. The judgment calls for payment of $169,709 in back wages and an equal amount in liquidated damages.
Investigators found Fabulous Freddies paid some non-tipped employees a “training rate” of $3.75 per hour until they proved efficient in the job, resulting in minimum wage violations. The company also failed to pay employees required overtime at time-and-one-half their hourly wage rates when they worked more than 40 hours in a week, in violation of the FLSA’s overtime provisions
“Failing to pay employees what they have legally earned allows companies to gain an unfair advantage over competitors that abide by the law,” said Wage and Hour Division District Director Thomas Gauza, in Chicago. “Wage violations can be avoided, and we encourage employers to reach out to us for guidance.”
Workers and employers with questions about the FLSA or any of the federal wage laws administered by the Division should call the agency’s toll-free helpline at 866-4US-WAGE (487-9243). All calls are confidential. More information is available online at http://www.dol.gov/whd/.”
For more information visit: https://www.dol.gov/newsroom/releases/whd/whd20171206
Until Next Time, Be Audit Secure!