DES MOINES, Iowa — A recent lawsuit brought by the U.S. Department of Labor (DOL) could bring as much as $600,000 in back wages to 38 restaurant workers in Iowa. The DOL’s lawsuit alleges the owners of a Mongolian Buffet and a King Buffet restaurant violated the Fair Labor Standards Act (FLSA). The department alleges the restaurants’ workers were denied proper minimum wage and overtime between March 2012 and March 2014 as a result of the violations.
The Department’s Claims
On occasion the DOL will bring a lawsuit against an employer on behalf of the employer’s employees. These lawsuits could be the result of investigations after complaints are made to the DOL or as part of the DOL’s routine enforcement actions. In either case, if the DOL finds sufficient evidence to believe violations have occurred it may file a lawsuit.
In this case, the DOL’s investigation found that two Ames, Iowa restaurants, the Mongolian Buffet and King Buffet, which closed in 2014, allowed employees to work around 72 hours each workweek. However, the employees’ wages did not reflect the overtime they worked. Additionally, the investigation found the wages the employees did receive for the hours they worked, when applied to the total number of hours they worked, resulted in the employees earning less than $7.25 per hour worked.
One of the reasons the wages did not account for proper minimum wage or for the overtime worked is because of the restaurants’ alleged practice of paying kitchen staff fixed salaries which were not affected by the number of hours the employees worked. And servers were found to have not received overtime when they worked more than 40 hours during a workweek, even though they were not paid a fixed salary.
The number of hours the employees worked and the number of hours for which they were not compensated is not completely clear because the owners are alleged to have failed to maintain accurate records, which is also a violation of the FLSA. The lawsuit specifically names the two owners of the restaurants who controlled the payroll and scheduling records at the restaurants, but also names the four corporations associated with the restaurant brands.
If you believe your employer is not compensating you for all of the hours you work or the overtime you have performed, you may have a wage or overtime pay claim. Time is limited for filing wage and overtime complaints so it is important to call today! Our top-rated team of overtime pay lawyers can be reached at (855) 754-2795. Or you may complete our Free Unpaid Overtime Case Review form and our legal team will evaluate your claim. If we accept your case, we will represent you under our No Fee Promise. This means there are no legal fees or costs unless you receive a settlement.