US Department of Labor investigation finds Virginia restaurants operator denied 55 workers at 6 locations $196K in overtime back wages

Employer:     

El Charro 4 Inc., operating as El Charro Mexican Restaurant, 1580 South Main St., Harrisonburg  

El Charro Mexican Restaurant, operating as El Charro Inc.,1570 East Market St. Harrisonburg   

El Charro 7 Mexican Restaurant LLC, operating as El Charro 7 Mexican Restaurant, 300 N. Main St., Bridgewater

El Charro Mexican Restaurant LLC, operating as El Charro 6 Mexican Restaurant, 8145 King Highway, King George    

La Naranja Cocina Mexicana Corp., operating as La Naranja Cocina Mexicana, 182 Byrd St., Orange

El Charro Group LLC, operating as El Charro 5 Mexican Restaurant, 4611 Southpoint Parkway, Fredericksburg

Investigation findings:

The U.S. Department of Labor’s Wage and Hour Division in Richmond found the operator of six Virginia restaurants failed to pay 49 salaried, non-exempt employees and six non-exempt hourly, tipped employees the proper overtime premium of time-and-one-half for hours over 40 in a workweek. The employer’s actions violated the Fair Labor Standards Act. 

The division also found the restaurants’ operator allowed six minor-aged employees to work past permissible hours, a violation of the FLSA’s child labor provisions, which limit the times of day, number of hours, and industries and occupations in which 14- and 15-year-olds may be employed.

The employer also did not maintain accurate records for locations and failed to have a Family Medical Leave Act policy in place. 

Back Wages Due:                 

$196,350

Civil Money Penalties:        

$4,027

Background:

The Bureau of Labor Statistics projects that 958,000 food and accommodation services workers left their positions in December 2021. BLS also projects about 41,400 openings for food service managers each year, on average, from 2020 to 2030.

Quote:

“As restaurants struggle to find the workers they need to remain competitive, they must remember that retaining and recruiting workers is harder for employers who fail to respect workers’ rights and pay them their full wages, and who violate labor laws in general,” said Wage and Hour Division District Director Roberto Melendez in Richmond, Virginia. “Employers who fall short of their obligations will be held legally accountable.”