U.S. Department of Labor Finds Kentucky Restaurant Violated Federal Wage and Child Labor Laws

FLORENCE, KY – After an investigation by the U.S. Department of Labor’s Wage and Hour Division (WHD), Zang Group Florence Mall Road LLC – operating as Skyline Chili Restaurant – has paid $6,065 in back wages to 26 employees for violating the minimum wage, overtime, and recordkeeping requirements of the Fair Labor Standards Act (FLSA). The restaurant also paid a civil penalty of $4,992 for federal child labor violations.

WHD determined Skyline Chili allowed three employees younger than 16 years old to work more hours than permitted and to disassemble, clean, and assemble a power-driven slicer as part of their employment, a violation of FLSA child labor requirements. The employer also failed to pay employees the required federal minimum wage for all the hours that they worked and the correct overtime rate when they worked more than 40 hours in a workweek. The wage violations resulted from the employer’s practice of paying employees working in non-tipped jobs, such as drive-through attendants, the tipped-worker minimum wage of $2.13 per hour. The employer also violated FLSA recordkeeping requirements when it failed to maintain records of the number of hours employees worked, and failed to display the required FLSA poster.

“Child labor laws exist to strike a balance between providing meaningful work experience for young people and keeping them safe on the job,” said Wage and Hour Division District Director Karen Garnett, in Louisville, Kentucky. “The U.S. Department of Labor encourages all employers to review their employment obligations and to contact us for compliance assistance. Violations like the wage issues and the child labor violations found in this investigation 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.

The mission of the Department of Labor is to foster, promote, and develop the welfare of the wage earners, job seekers, and retirees of the United States; improve working conditions; advance opportunities for profitable employment; and assure work-related benefits and rights.