Wage and Hour Division (WHD)

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SEATTLE -- The U.S. Labor Department announced today that the New Great Wall Buffet Inc. of Tacoma, Wash., has paid $38,524 in back wages to 18 low-wage restaurant workers for violations of the minimum wage and overtime provisions of the federal Fair Labor Standards Act (FLSA), as ordered by the U.S. District Court in Tacoma.

According to Donna Hart, director of the department's Wage and Hour Division in Seattle, an investigation determined that the company violated the federal law by paying a fixed monthly salary without regard to the actual daily and weekly hours worked. As a result, the workers did not receive the required minimum wage and overtime compensation. The company also violated federal regulations by failing to maintain accurate and complete time and pay records.

The FLSA requires all non-exempt employees to be paid at least the minimum wage of $5.15 per hour. Overtime must be paid for hours worked over 40 in each work week, regardless of how often an employee is paid. The overtime rate is one and one-half times the employee’s regular rate of pay.

The department’s investigation covered the period June 1, 2005, through Oct. 9, 2005. The $38,524 in back wages was paid in full at the sentencing hearing in Federal District Court. The owner of the company was also prosecuted for criminal violations related to the illegal status of some of the workers.

The Wage and Hour Division recovered over $166 million in back wages in fiscal year 2005 for more than 241,000 workers. Average days to resolve a complaint decreased in fiscal year 2005 from 92 days to 85 days. For more information about the FLSA, call the Seattle Wage and Hour Division office at (206) 398-8039 or the toll-free help line at (866)-4USWAGE, (866) 487-9243. Information is also available at www.wagehour.dol.gov.

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