News Brief
US Department of Labor recovers $45K in back wages, damages for 11 servers at southern Michigan restaurant, bar
Employers: Old Woodward Ventures LLC, operating as Luxe Bar & Grill
Kara Bongiovanni
Grand Lux Café, Troy, Michigan
Court Action: Consent judgment and order
Court: U.S. District Court Eastern District of Michigan, Southern Division
Investigation findings: An investigation by the U.S. Department of Labor’s Wage and Hour Division recovered $45,428 ‒ representing $22,714 in back wages and an equal amount in liquidated damages ‒ for 11 servers employed by Kara Bongiovanni and Old Woodward Ventures LLC, operators of Luxe Bar & Grill in Troy. Luxe Bar & Grill and Bongiovanni will also pay $4,570 in civil money penalties for violations of Fair Labor Standards Act’s overtime and recordkeeping provisions.
Investigators found Luxe Bar & Grill and Bongiovanni paid servers straight time for overtime “off the books” in cash and did not maintain accurate payroll records.
In addition to paying the back wages, liquidated damages, and civil money penalties, Luxe Bar & Grill and Bongiovanni agreed to maintain an electronic time and recordkeeping system and maintain accurate payroll records.
Quotes: “When employers knowingly shortchange workers of their rightfully earned wages, such as overtime, they literally take money out of the pockets of their employees,” explained Wage and Hour District Director Timolin Mitchell in Detroit. “Luxe Bar & Grill’s practice of recording the hours and paying them off the books demonstrated they knew the law and chose to ignore it.”
“Employers should know that the department will use all available tools to ensure compliance with the FLSA,” added Regional Solicitor Christine Heri in Chicago. “When employers pay their workers less than the required wage, they will be held accountable—even if they try to hide it by making those payments off the record.”
Background: Learn more about the Wage and Hour Division, including a search tool to use if you think you may be owed back wages collected by the division and how to file an online complaint. For confidential compliance assistance, employees and employers can call the agency’s toll-free helpline at 866-4US-WAGE (487-9243), regardless of where they are from.
Learn more about compliance assistance for restaurant workers.
Download the agency’s new Timesheet App for iOS and Android devices – also available in Spanish – to ensure hours and pay are accurate.
