US Labor Department investigation finds North Carolina restaurant fails to pay workers minimum wage and overtime

Employer name: Fiesta Mexicana LLC, Fiesta Mexicana Restaurante

Investigation site: 957 Town Centre Blvd, Clayton, North Carolina 27520

Investigation findings: Investigators from the department's Wage and Hour Division found that Fiesta Mexicana LLC violated the overtime and minimum wage provisions of the Fair Labor Standards Act. Specifically, the employer paid 23 employees straight time rather than required overtime at time and one-half when employees work beyond 40 hours in a work week. The employer also paid 19 employees less than the required minimum wage of $7.25.

Resolution: Fiesta has agreed to ensure both of its locations are in compliance with the FLSA and has paid back wages to 23 employees totaling $102,631.

A follow-up investigation was conducted and found that the employer requested one of the employees to return the back wages due as a result of the initial Wage Hour Division investigation. The employee refused and was fired. The follow-up investigation resulted in the employer paying the terminated employee $738 in lost wages and an equal amount in liquidated damages for the period of time the terminated employee was unemployed.

Quote: "We strongly encourage workers who may be in similar situations, where their employer is not paying at least minimum wage or overtime after 40 hours of work in a workweek or requiring them to return their back wages, to reach out to us. The information they share is kept confidential," said, Frank McGriggs, the Wage and Hour Division's deputy regional administrator in Atlanta. "The violations found during these investigations are, unfortunately, all too common in the restaurant industry. We plan to continue our enforcement effort in this industry where failure to pay legally required wages hurts both workers and their families and the employers who follow the law."

• Read this news release in Spanish.