Federal Labor Law Violations Found at Austin Restaurants

An astounding 95 percent of Austin-area restaurants investigated by the U.S. Department of Labor’s Wage and Hour Division are accused of federal labor law violations.

In just nine months, more than $330,000 in back wages were recovered for 500 restaurant workers in Austin.

Violations include everything from telling employees to work off the clock to paying straight-time wages for overtime hours worked.

The Wage and Hour Division is taking on these federal labor law violations by focusing on education and enforcement.

In a press release, Wage and Hour Division administrator Dr. David Weil said that the level of noncompliance uncovered by these investigations is unacceptable.

“WHD will continue to use every tool we have available to combat this issue,” Dr. Weil said. “This includes vigorous enforcement as well as outreach to employer associations and worker advocates to ensure that Austin restaurant workers receive a fair day’s pay for a fair day’s work.”

Nonexempt employees must be paid at least the federal minimum wage of $7.25 per hour. When more than 40 hours per week are worked, the employee is owed time and one-half the regular hourly rate.

Numerous Federal Labor Law Violations

Among the most common violations found by the Labor Department:

• Illegally deducting items such as cash register shortages and credit card transaction fees from workers’ wages
• Allowing minors to operate hazardous machinery, including dough mixers and meat slicers, in violation of child labor laws
• Paying incorrect overtime for servers by basing wages on $2.13 an hour base pay before tips instead of on the federal minimum of $7.25 per hour
• Paying straight-time rates for overtime hours
• Not paying correct overtime for salaried non-exempt cooks
• Making employees work for tips only, totally disregarding minimum-wage standards
• Involving kitchen staff in the creation of illegal tip pools
• Not maintaining accurate records of employees’ wages and work hours

The Wage and Hour Division is working with employer associations and state agencies to educate employers and to provide the violating employers with Fair Labor Standards Act compliance assistance information.

The agency has plenty of work to do. The U.S. Department of Labor found that 67 out of 70 restaurants in Austin were illegally underpaying their employees.

While some of the employers are unaware they committing federal labor law violations, other employers take advantage of hiring people who are unfamiliar with their rights under the Fair Labor Standards Act.

One Man’s Experience as an Austin Restaurant Employee

Jaymys S. said he worked at one Austin restaurant for two years where the restaurant manager would tell him not to clock in until he was assigned his first table. He said nearly every employee was required to work off the clock for at least 45 minutes a day.

“I’ve actually worked for about five different restaurants in my five years here in Austin and the majority of them I can honestly say – yeah, the hush, hush wink, wink, don’t clock in until your first table is something that happens regularly,” Jaymys said.

You Could Be Owed Back Wages

If you have worked for an employer who has committed federal labor law violations, you could be owed back wages. In order to collect this compensation, you might wish to join a wage and hour class action lawsuit against your former employer.

Join a Free Wage & Hour Class Action Lawsuit Investigation

If you were forced to work off the clock or without overtime pay within the past 3 years, you have rights – and you don’t have to take on the company alone.

Get a Free Case Evaluation Now