Wage and Hour Division (WHD)

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KANSAS CITY, MO -- In an agreement to settle a complaint by the U.S. Department of Labor, El Pato, Inc. and JYR's El Maguey Corporation, Inc., operating two Kansas City area El Maguey Mexican Restaurants, agreed to pay $78,701 in back wages to 20 current and former employees. The Labor Department's complaint alleged minimum wage and overtime violations of the Fair Labor Standards Act (FLSA.)

"The Department of Labor is committed to ensuring that workers, especially low-wage workers like those in this case, are paid the full wages they deserve and the overtime they earn. As a result of the department's efforts, $78,701 in back wages have been recovered for workers in this case," said Tammy D. McCutchen, the department's Wage and Hour administrator.

A settlement agreement and U.S. Department of Labor complaint were both filed September 29, 2003 in U.S. District Court in Kansas City, MO. The complaint alleged the El Maguey restaurants, located in Lees Summit, Missouri and Blue Springs, Missouri, violated the minimum wage and overtime provisions of the FLSA. The enterprise failed to pay workers at least the federal minimum wage of $5.15 per hour and failed to compensate employees at the time and one-half rate for all hours worked in excess of 40 within a week, as required by the FLSA.

In addition to requiring the payment of back wages, the order signed by Federal District Judge Dean Whipple also ordered the firm to comply with the minimum wage, overtime pay, and recordkeeping provisions of the Act in the future and required company officials to meet with Wage and Hour Division representatives and present payroll practices to assure compliance with the law.

"The agency continues to pursue balanced enforcement of the laws governing worker protections, yet we are also offering employers compliance assistance for a better understanding of what the law requires in order to prevent violations in the future," according to Kansas City Wage and Hour district director Karen Chaikin.

The Wage and Hour Division enforces the FLSA, which sets the minimum wage, currently $5.15 per hour, requires covered employers to pay overtime for hours worked in excess of 40 hours in any workweek and to keep adequate and accurate payroll records.

For more information about the FLSA, call 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.