U.S. Department of Labor Investigation Results in Kentucky Restaurant Paying $78,562 in Back Wages and Damages

CENTRAL CITY, KY – New Lucky Garden Inc. – a restaurant in Central City, Kentucky, operating as Lucky Garden – will pay $78,562 in back wages and liquidated damages to eight employees after a U.S. Department of Labor Wage and Hour Division (WHD) investigation found the employer violated minimum wage, overtime, and recordkeeping requirements of the Fair Labor Standards Act (FLSA).

WHD found New Lucky Garden Inc. paid most employees flat monthly salaries, in cash, without regard to the number of hours they actually worked. This practice resulted in minimum wage violations when those salaries failed to cover all the workers' hours at the federal minimum wage of $7.25 per hour, and overtime violations when they worked more than 40 hours in a workweek yet were not paid overtime. The employer also paid one tipped employee a direct cash wage of only $2.00 per hour, resulting in an additional minimum wage violation.

WHD determined that New Lucky Garden Inc. also violated FLSA recordkeeping requirements when they failed to maintain records of the number of hours employees worked each workweek.

"The Wage and Hour Division works to ensure that employees are paid the wages they have legally earned," said District Director Karen Garnett, in Louisville, Kentucky. "The U.S. Department of Labor will continue to provide a robust compliance assistance program to help employers understand their responsibilities and comply with the law. Costly violations like those in this case can be avoided."

For more information about the FLSA and other laws enforced by the Wage and Hour Division, contact the toll-free helpline at 866-4US-WAGE (487-9243). Employers who discover overtime or minimum wage violations may self-report and resolve those violations without litigation through the PAID program. Information is also available at https://www.dol.gov/whd.