MANSFIELD, Ohio – The U.S. Department of Labor has filed a lawsuit against Rancho Fiesta restaurant and its manager alleging the restaurant failed to pay workers nearly $383,000 in minimum wage and overtime pay, according to a statement from the agency.
The Mexican restaurant, located on South Trimble Road, and its shareholder Lorenzo Sanchez of Sanchez Inc., who managed the day-to-day operations at the restaurant, violated the Fair Labor Standards Act, according to the U.S. Department of Labor.
The FLSA suit alleges that the restaurant and its manager did not pay workers for hours worked over 40 in a workweek and also failed to pay legally required overtime at time and one-half of their hourly rate of pay. In addition, the company failed to maintain accurate records of all hours worked by its employees.
Wage and hour investigators estimated that 29 workers are due more than $383,000. According to the statement, the minimum wage and overtime violations took place when the manager directed workers to clock in for just 40 hours while routinely working 45 to 65 hours per week. Investigators also found that two employees were paid just $775 for 134 hours of scheduled worktime every two weeks.
The restaurant also employed a minor in violation of school year work hour rules, including scheduling the minor to work past 7 p.m. on school nights and for more than three hours per day when school was in session.
The company was assessed $33,050 in civil money penalties for repeated violations of the FLSA. This is the third time the restaurant has been found in violation, according to George Victory, district director for the Wage and Hour Division in Columbus. According to the statement from the Department of Labor, investigations in 2010 and 2013 also found violations of minimum wage and overtime rules. The company paid a total of $55,075 in back wages and penalties as a result of the two previous investigations.
“Denying these workers the wages they rightfully earned harms not only the employees and their families, but makes it harder for law-abiding employers to compete,” said Victory. “The Wage and Hour Division will use every enforcement tool at our disposal to earn a fair day’s pay for a fair day’s work.”
The suit seeks full payment of the back wages and an equal amount in liquidated damages for the employees.
According to Scott Allen, spokesperson for the U.S. Department of Labor, they will continue to monitor the restaurant in the future to ensure that the owner follows the FLSA and pays his employees properly.
“We’re not in the business of closing businesses. We’re in the business of making sure workers receive fair pay and appropriate pay,” Allen said.
The FLSA requires that employees be paid at least the federal minimum wage of $7.25 per hour for all hours worked, plus time and one-half of their regular hourly rates for hours worked beyond 40 hours per week. The act says that companies who violate the law are liable to employees for their back wages, plus an equal amount in liquidated damages. Liquidated damages are paid directly to the affected employees.
In addition, the law requires businesses to maintain accurate time and payroll records, and prohibits retaliation against employees who exercise their rights under the law.