U.S. Department of Labor Investigation Results in Tennessee Restaurant Paying $48,197 to Resolve Minimum Wage and Overtime Violations

CHATTANOOGA, TN – After an investigation by the U.S. Department of Labor’s Wage and Hour Division, Chattanooga-based Chao’s Mongolian Grill LLC will pay $48,197 in back wages to eight employees for violations of the minimum wage, overtime, and recordkeeping provisions of the Fair Labor Standards Act (FLSA).

Division investigators found the restaurant violated the FLSA’s minimum wage requirements when it illegally required servers to surrender 15 percent of their daily tips to the business. Investigators also found Chao’s failed to pay time-and-one-half for overtime hours worked, and failed to maintain required payroll records.

“The U.S. Department of Labor is committed to ensuring that employees receive the wages they have legally earned for all the hours they have worked,” said Nettie Lewis, Wage and Hour Division District Director in Nashville. “The Department’s work levels the playing field for employers who play by the rules. We encourage all employers to reach out to us for information about how to comply with the law.”

For more information about the FLSA and other laws enforced by the Wage and Hour Division, contact the Division’s toll-free helpline at 866-4US-WAGE (487-9243). Information is also available at http://www.dol.gov/whd including a search tool to use if you think you may be owed back wages collected by the Division.