Wage and Hour Division (WHD)

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BOSTON -- American Foods, Inc., a Burlington, Mass.-based company that operates restaurants in Waltham, Andover, Arlington, Burlington, Wayland, Danvers and Saugus, has agreed, without admitting liability, to pay nine employees over $43,000 in back wages and damages to settle a lawsuit filed by the U.S. Department of Labor alleging violations of the Fair Labor Standards Act (FLSA).

The FLSA requires that employees be paid the minimum wage of $5.15 per hour; time and one-half their regular rate of pay for hours worked over 40 per week; and that accurate records be maintained of employees' wages, hours and other conditions of employment.

The Labor Department's lawsuit, filed in September 2002, alleged overtime violations by American Foods, Inc. as well as by the following restaurants it operates: Old Waltham Restaurant, Inc., doing business as Grassfield's Food and Spirits, Waltham, Mass.; Old Andover Restaurant, Inc., d/b/a Grassfield's Food and Spirits, Andover, Mass.; Old Arlington Restaurant, Inc., d/b/a Jimmy's Steer House, Arlington, Mass.; Old Burlington Restaurant, Inc., d/b/a Jimmy's Steak and Seafood, Burlington, Mass.; Old Wayland Restaurant, Inc., d/b/a Luigi's Italian Grill, Wayland, Mass.; Old Danvers Restaurant, Inc., d/b/a Nick and Tony's Saltwater Cafe, Danvers, Mass.; and Old Saugus Restaurant, Inc., d/b/a Jimmy's Steak House, Saugus, Mass.

"Our investigation and this court action reflect our commitment to protecting the rights of low-wage workers," said Corey Surett, district director for the Labor Department's Wage and Hour Division in Boston.

The department's lawsuit has been resolved by a judgment signed by U.S. District Judge Patti B. Saris on April 3, that prohibits the defendants from future violations of the FLSA and orders them to pay nine employees a total of $43,218.91, including $29,218.91 in back wages and $14,000 in liquidated damages. These payments cover the period from Feb. 21, 2000 to Feb. 25, 2002. In addition, the judgment orders the defendants to review their records for the period Feb. 25, 2002 to Nov. 30, 2002 and calculate the amount of overtime back wages due to "production managers" for that period.

Finally, the judgment requires the defendants to provide proof to the Wage and Hour Division that all the back wages have been paid to each employee by June 30.

For more information about the requirements of the FLSA, call the Labor Department's toll-free help line at 1-866-4USWAGE (1-866-487-9243) or contact the Boston Wage and Hour Division office at 617-624-6700. 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.