El Mariachi Mexican Restaurant owners agree to pay $90K in back wages, penalties and damages after Labor Department investigation

Employer name: JAO Enterprises LLC, doing business as El Mariachi Mexican Restaurant

Investigation site: 2091 North Bend Road, Suite 150, Hebron, Kentucky

Date and what prompted investigation: The U.S. Department of Labor's Wage and Hour Division's Louisville District Office initiated an investigation in August 2013 as a follow-up to a separate investigation at an affiliated restaurant.

Investigation findings: Investigators found that the employer violated provisions of the Fair Labor Standards Act by failing to pay minimum wage and overtime to several employees. The employees were working as cooks, dishwashers, and bus boys. The workers were paid a salary for all hours worked, but were not paid overtime. During some pay periods, the employees were not paid the minimum wage. The department filed a complaint on March 3, 2014, in the U.S. District Court for the Eastern District of Kentucky against the restaurant and its owners, Jaime Magana, Abel Leon, and Damian Rodriguez. On Jan. 13, 2015, the district court judge signed the consent order and permanent injunction.

Resolution: The defendants have agreed to pay $90,000 in back wages and liquidated damages to 17 employees. The employer has paid $18,700 in civil money penalties for repeat and willful violations. The employer has also agreed to hire a consultant to audit several other restaurants that they own in Statesboro, Ga., Lexington, Kentucky, Harrison and Hamilton, Ohio, and Lawrenceburg, Indiana. According to the agreement, if the consultant finds additional FLSA violations, the defendants have agreed to pay those back wages as well. During the audit, the defendants are required to distribute information to employees regarding the FLSA and information regarding how to file a complaint with the Labor Department.

Documents attached: Complaint, consent order and permanent injunction