U.S. Department of Labor Investigation Results in San Diego Restaurant Paying $192,622 to 18 Employees to Resolve Wage Violations

SAN DIEGO, CA – After a U.S. Department of Labor Wage and Hour Division (WHD) investigation, Sam Woo – a restaurant based in San Diego, California – will pay 18 employees $192,622 in back wages and liquidated damages for violating provisions of the Fair Labor Standards Act (FLSA).

WHD investigators discovered that Sam Woo paid cooks on a salary basis regardless of the number of hours they actually worked. This practice resulted in overtime violations when those employees worked more than 40 hours in a week and were not paid overtime. Sam Woo also paid servers and food prep workers straight time for their overtime hours. The employer kept two sets of time cards – one for the first 40 hours of work, paid by check, and the second for any additional hours, paid in cash, to hide that employees worked overtime.

“Employers must pay employees the wages they have legally earned for all the hours they have worked,” said Rodolfo Cortez, Wage and Hour Division District Director in San Diego. “Other employers should use the resolution of this case as an opportunity to review their own pay practices to ensure that they are paying workers in compliance. We remain committed to educating employers and employees about their rights and responsibilities so that violations can be avoided, and that employers compete on a level playing field.”

Employers who discover overtime or minimum wage violations may self-report and resolve those violations without litigation through the PAID program.  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 https://www.dol.gov/whd including a search tool to use if you think you may be owed back wages collected by the Division.