News Brief
US Department of Labor recovers $55K in back wages for 7 workers after Durham restaurant fails to pay overtime, denies tips left by customers
Employer: Kandible Inc., operating as Indian Monsoon
Investigation site: 105 W. Morgan St., Durham, NC 27701
Investigation findings: U.S. Department of Labor Wage and Hour Division investigators found Indian Monsoon illegally kept tips left by customers for employees’ services. The employer also paid a flat salary to three non-exempt kitchen employees. By doing so, Indian Monsoon failed to pay the additional overtime premium pay for hours over 40 hours in a workweek. Both pay practices violate the Fair Labor Standards Act. Investigators also determined the employer failed to keep accurate records of the number of hours worked by the non-exempt employees.
Back Wages Recovered: $55,435 in back wages for seven workers.
Quote: “Customers’ tips to restaurant staff belong to those who earned them, such as servers, bartenders and other frontline workers. Any attempt by an employer to keep these tips violates federal labor law,” explained Wage and Hour Division District Director Richard Blaylock in Raleigh, North Carolina. “The U.S. Department of Labor is determined to protect workers’ rights to be paid all their earnings, including tips, and overtime as required. We encourage both employees and employers to contact us with their questions.”
Background: Employers can contact the Wage and Hour Division at its toll-free number, 1-866-4-US-WAGE. The division also offers numerous online resources for employers, such as a fact sheet on Fair Labor Standards Act wage laws overtime requirements. Workers who feel they may not be getting the wages they earned may contact a Wage and Hour Division representative in their state through a list and interactive online map on the agency’s website. Workers and employers alike can help ensure hours worked and pay are accurate by downloading the department’s Android Timesheet App for free.
