U.S. Department of Labor Investigation Recovers $153,740 in Back Wages and Damages for Employees at Tennessee Restaurant

CHATTANOOGA, TN – After an investigation by the U.S. Department of Labor’s Wage and Hour Division (WHD), Chattanooga Restaurant Group LLC – operating as City Café Diner – will pay $153,740 in back wages and liquidated damages to 46 employees for violating the overtime and recordkeeping requirements of the Fair Labor Standards Act (FLSA).

WHD investigators found the restaurant paid some employees, including cooks, dishwashers, and bussers, flat salaries each workweek without regard to the number of hours they actually worked. This practice resulted in overtime violations when those employees worked more than 40 hours in a workweek yet were not paid overtime. The City Café Diner also failed to maintain records of the number of hours these employees worked each week, violating FLSA recordkeeping requirements.

"Paying a set salary does not excuse employers from having to pay overtime when employees work more than 40 hours per week," said Wage and Hour Division District Director Nettie Lewis, in Nashville, Tennessee. "Employers must review their legal obligations and contact the Wage and Hour Division for compliance assistance. Violations like those in this case can be avoided."

The Department offers numerous resources to ensure employers have the tools they need to understand their responsibilities and to comply with federal law, such as online videos, confidential calls, or in-person visits to local WHD offices.

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.