Wage and Hour Division (WHD)

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NASHVILLE, Tenn. --

The U.S. Labor Department announced today that the operator of five Monterrey Mexican Restaurants in eastern Tennessee has agreed to pay $297,204 in back wages to 71 workers after a Wage and Hour Division investigation found they had not been paid in accordance with the provisions of the Fair Labor Standards Act (FLSA).

“The department is committed to ensuring that all workers receive the wages they have earned,” said Carol Merchant, director of the Wage and Hour Division’s district office in Nashville. “We are pleased to have recovered more than $297,000 for these workers.”

Wage and Hour investigators found FLSA violations at Monterrey Mexican Restaurants in Lenoir City, Sevierville, Maryville, and at two Knoxville locations. The corporate owner is headquartered in Lawrenceville, Ga.

The investigation found the restaurants did not maintain records of hours worked by all employees; did not show all employees on the payroll; and did not pay employees for all hours worked. Some servers reportedly worked for tips only and some were not paid for hours worked over 40 in a workweek. Investigators also determined that no employees received overtime pay and certain salaries paid to kitchen employees did not always equal the minimum wage.

The FLSA requires that covered workers be paid at least the federal minimum wage for all hours worked and time and one-half their regular rate of pay, for all hours worked over 40 in a single workweek. The law also requires employers to maintain accurate records of employees’ wages, hours and other conditions of employment.

For more information about the FLSA and other laws administered by the Wage and Hour Division, call the department’s toll-free help line at (866) 4US-WAGE (487-9243); visit the Internet at www.wagehour.dol.gov; or contact the Wage and Hour Division office in Nashville located in the Airport Executive Plaza, 1321 Murfreesboro Rd., Suite 511; phone: (615) 781-5343.

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