Wage and Hour Division (WHD)

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HOUSTON, TX -- Skyrider Investment Inc. in Houston has agreed to pay $52,855 in back minimum wage and overtime wages after an investigation by the U.S. Department of Labor found that 22 former and current kitchen workers and wait staff were underpaid.

An investigation conducted by the Labor Department’s Wage and Hour Division district office in Houston determined that Skyrider Investment Inc., doing business as Kirin One Japanese Buffet in Houston, failed to pay time-and-a-half for hours worked in excess of 40 in a workweek for the period May 15, 2002 to April 30, 2004. Skyrider Investment, Inc. was also keeping a percentage of the tips received by wait staff, which resulted in underpayments.

“The Department of Labor is committed to ensuring that all workers are paid the full wages and overtime they are entitled to receive, and that employers keep accurate payroll records,” said Cynthia Watson, Wage and Hour regional administrator in Dallas. “We are especially concerned about protecting low-wage workers.”

As part of an agreement reached with the Wage and Hour Division, Skyrider Investment has agreed to pay back wages through an installment agreement. The company has also agreed to future compliance with the FLSA (Fair Labor Standards Act) and has voluntarily entered into a consent judgment which bars the company from violating FLSA provisions.

On July 30, 2003, the Wage and Hour Division and other federal agencies signed an agreement with a number of employer and community groups representing the Asian American community to assist employers on complying with federal workplace laws. This collaborative effort, called TIGAAR, The Information Group for Asian American Rights, is designed to provide comprehensive and language-specific information to employers seeking information about their duties and responsibilities regarding their employees.

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. Kirin One Japanese Buffet failed to accurately calculate and pay overtime wages. Restaurant employers may consider tips as part of an employee’s wages but must pay at least $2.13 an hour in direct wages. All tips must be retained by the employees or shared through a valid tip pool arrangement. 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 in fiscal 2004 from 108 days to 92 days.

For more information about the FLSA, call the Wage and Hour Houston office at (713) 339-5500 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.