Wage and Hour Division (WHD)

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COLUMBUS, Ohio -- The U.S. Department of Labor has secured $193,367 in back wages for 102 low wage workers employed by Jose Avalos, owner of 11 Mexican restaurants in the Columbus area, after an investigation by the department’s Wage and Hour Division determined that he violated the minimum wage and overtime pay provisions of the Fair Labor Standards Act (FLSA).

“The department is committed to ensuring that all workers receive all wages that they have earned,” said George Victory, director of the Wage and Hour Division’s district office in Columbus.

The investigation established that Avalos’ Las Margaritas, Fiesta Mexicana and Mucho Buenos restaurants did not pay 102 low wage workers time and one-half their regular rates of pay for hours worked beyond 40 in a workweek.

The FLSA requires covered nonexempt employees to be paid the federal minimum wage for all hours worked and time and one-half their regular rates of pay for hours worked over 40 in a week. An employer may round employee time to the nearest quarter hour but may violate the FLSA minimum wage and overtime pay requirements if the employer always rounds down. The FLSA provides that non-discretionary bonuses must be included in the regular rate of pay, including those bonuses that are announced to employees to encourage them to work more steadily, rapidly or efficiently, and bonuses designed to encourage employees to remain with the enterprise. Employers must also maintain accurate time and payroll records.

Effective July 24, 2007, the federal minimum wage for covered nonexempt employees was raised to $5.85 per hour. The minimum wage will increase to $6.55 per hour effective July 24, 2008, and to $7.25 per hour effective July 24, 2009.

The Wage and Hour Division concluded 31,987 compliance actions and recovered more than $171 million in back wages for more than 246,000 employees in fiscal year 2006. Back-wage collections last year represent a 30 percent increase over back wages collected in fiscal 2001. The number of workers receiving back wages has increased by 14 percent since fiscal 2001.

For more information, call the Department of Labor’s toll-free helpline at (866) 4US-WAGE (487-9243). Information is also available on the Internet at www.wagehour.dol.gov. Information about the current exemption for white collar executive, administrative and professional employees can be found on the Internet at http://www.dol.gov/fairpay.

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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.