Wage and Hour Division (WHD)

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MIAMI -- El Atlacatl Restaurant has agreed to pay $50,717 in back wages to 39 employees after the U.S. Department of Labor’s Wage and Hour Division found that the Miami eatery had failed to ensure employees received the federal minimum wage and overtime payments required by the Fair Labor Standards Act (FLSA).

Investigators discovered that employees were paid a daily wage, regardless of the number of hours worked. Employees worked five to six days a week without being paid overtime when they exceeded 40 hours in a work week.

“When designing pay policies, employers must meet the requirements of both federal and state labor laws. Employers should never implement a pay system that circumvents FLSA regulations,” said Will Garnitz, director for the Wage and Hour Division’s Miami District Office.

To determine the amount of back wages owed, investigators reconstructed work hours, since the employer did not keep accurate time records of its employees. The investigation covered the period from November 2005 through November 2007.

The FLSA requires that covered employees be paid at least the federal minimum wage, and time and one-half their regular rates of pay, including commissions, bonuses and incentive pay, for hours worked over 40 per week. An employer of a tipped employee is only required to pay $2.13 per hour in direct wages if that amount combined with the tips received at least equals the federal minimum wage. If the employee’s tips combined with the employer’s direct wages of at least $2.13 per hour do not equal the federal minimum hourly wage, the employer must make up the difference. To qualify for an exemption from FLSA, employees generally must meet certain job duty and salary tests. Employers must also maintain accurate time and payroll records.

For more information about the FLSA, call the department’s toll-free helpline at 866-4US-WAGE (487-9243); visit the Internet at www.wagehour.dol.gov; or contact the Miami District Office of the Wage and Hour Division, 10300 Sunset Drive (Sunset Center), Room 255; phone 305-596-9874.

The Labor Department’s Wage and Hour Division concluded 30,467 compliance actions and recovered a record $220 million in back wages for more than 341,000 employees in fiscal year 2007. Back-wage collections in fiscal year 2007 represent a 67 percent increase over back wages collected in fiscal year 2001. The number of workers receiving back wages has increased by 58 percent since fiscal year 2001.

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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.