Indianapolis grocery store and restaurant chain underpaid workers again

INDIANAPOLIS — The great service, authentic Mexican food and unique groceries found at three Carniceria Guanajuato Mexican grocery stores and restaurants in Indianapolis inspire customers to post rave reviews at websites like Yelp and Urbanspoon.

Behind their smiles, the hard-working people who bake specialty breads, butcher prime meat, wait and bus tables and operate the registers at these establishments struggle to meet basic needs on the low wages earned. Their challenge only worsens when their employer does not pay them for all hours worked.

For the second time in three years, U.S. Department of Labor Wage and Hour Division investigators found Carniceria Guanajuato failed to pay its workers properly at least the minimum wage and overtime. A federal investigation found the company owes 104 employees a total of $44,936 in unpaid wages as it violated provisions of the Fair Labor Standards Act's minimum wage, overtime and record-keeping requirements. The company has also been assessed civil money penalties of $22,880 for repeated violations of the FLSA.

"This investigation is a win for workers," said Karen Chaikin, regional administrator for the Wage and Hour Division in Chicago. "These entry-level workers, often with limited English proficiency, are particularly vulnerable to unfair labor practices. The Wage and Hour Division will use every tool it has to get workers the wages they earned and level the playing field for employers."

Investigators found that violations occurred when the company took deductions for uniforms from employee's pay, reducing their hourly rate below minimum wage. They also identified overtime violations, and found one employee incorrectly categorized as exempt from overtime and not paid legally required overtime pay.

The division found similar violations during a 2012 investigation at the grocery and restaurant establishment.

To resolve the violations, Carniceria Guanajuato has signed a compliance agreement. In it, the company agrees to pay the back wages owed and ensure future compliance with the FLSA at its locations. The company has also agreed to do the following:

• Have annual audits done by a certified public accountant.
• Train managers to monitor and review employee clock in/out times.
• Provide all employees with check stubs.
• Not pay employees in cash.
• Provide workers with copies of the Wage and Hour Division's "Work Hours Recordkeeper" publication they can use to track their hours and a pocket card describing how to file a complaint. The company must also give tipped employees a fact sheet on requirements for paying tipped employees.

The FLSA requires that covered, nonexempt employees be paid at least the federal minimum wage of $7.25 per hour for all hours worked, plus time and one-half their regular hourly rates for hours worked beyond 40 per week. Additionally, the law requires employers to maintain accurate time and payroll records and prohibits retaliation against employees who exercise their rights under the law.

For more information about the FLSA, visit https://www.dol.gov/whd/ or call the division's toll-free helpline at 866-4US-WAGE (487-9243).