Wage and Hour Division (WHD)

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SAN ANTONIO, Texas -- The U.S. Department of Labor today announced that Buffet Palace Inc., doing business in Austin and Round Rock, Texas, has agreed to pay 239 current and former wait staff, cooks, and kitchen helpers back wages due for violations of the minimum wage and overtime provisions of the Fair Labor Standards Act (FLSA). Assessed civil money penalties totaling $31,680 have been paid.

An investigation by the department’s Wage and Hour Division, covering June 30, 2003 to Feb. 1, 2005, found that Buffet Palace failed to pay proper overtime wages when employees worked more than 40 hours in a workweek and failed to pay some workers the minimum wage. Additionally, the employer did not keep accurate payroll records.

“This is the second investigation of this employer in the last four years that found the same violations,” said Cynthia Watson, regional administrator for the department’s Wage and Hour Division in Dallas. “Some employees worked up to 58 hours in a workweek without receiving overtime wages. We are pleased that the department was able to recover nearly $135,000 in back wages for these workers. The civil money penalty should reinforce our commitment to ensuring that employers stay in compliance.”

Buffet Palace, a Chinese-style, full-service and buffet restaurant, has three locations in Austin and Round Rock. The company made deductions for uniforms, failed to pay kitchen staff for hours worked over 40 in a workweek and improperly used tip pool money for business expenses. A 2001 investigation resulted in the employer paying $168,600 in back overtime and minimum wages. Wage and Hour assessed civil money penalties totaling $31,680 because the employer repeated the same violations again.

The company has agreed to fully comply with the FLSA in the future.

The FLSA requires employees to be paid the minimum wage of $5.15 per hour for all hours worked and time and one-half their regular rate of pay for hours worked over 40 per week. Employers must also maintain accurate time and payroll records.

The Wage and Hour Division recovered nearly $200 million in back wages in fiscal year 2004 for more than 288,000 workers. Average days to resolve a complaint decreased during that time from 108 to 92 days. For more information about the FLSA, call the Wage and Hour San Antonio district office at (210) 308-4515 or the Department of Labor’s toll-free help line at 1-866-4USWAGE (1-866-487-9243). Information is also available on the Internet at www.wagehour.dol.gov.

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U.S. Department of Labor releases are accessible on the Internet at www.dol.gov. The information in this news release will be made available in alternate format (large print, Braille, audio tape or disc) from the COAST office upon request. Please specify which news release when placing your request at (202) 693-7828 or TTY (202) 693-7755. The Labor Department is committed to providing America’s employers and employees with easy access to understandable information on how to comply with its laws and regulations. For more information, please visit www.dol.gov/compliance.