Wage and Hour Division (WHD)
U.S. Department of Labor
SAN ANTONIO -- The U.S. Department of Labor has filed a lawsuit against PCXAC LLC, XXT Investment LLC, Xac’s Investment Co., WKHK Investment LLC, DLKJ Investments Inc. and Peter Xac, manager, all doing business as China Sea Restaurants #1, 2, and 3, after a Wage and Hour Division investigation found minimum wage, overtime and record-keeping violations of the Fair Labor Standards Act. Investigators found that 164 restaurant workers are due approximately $1,018,000.
“The Labor Department is committed to ensuring that all workers are paid full and fair wages,” said Secretary of Labor Hilda L. Solis. “Restaurant workers are among the most vulnerable workers in this country. This lawsuit demonstrates the department’s commitment to using all enforcement tools available, including litigation, to recover workers’ wages and to ensure a level playing field for law-abiding employers.”
The department’s lawsuit was filed in the Western District of Texas, San Antonio Division, seeking back wages and a permanent injunction in San Antonio precluding the companies from future violations of the FLSA. Violations were found at the three restaurant locations at Thousand Oaks Drive, Colonial Square and Embassy Row.
The investigation by the division’s San Antonio District Office determined that the company failed to record all hours worked for kitchen staff at all three China Sea locations, resulting in minimum wage and record-keeping violations, as well as minimum wage and overtime violations for wait and serving staff. Additionally, investigators found that the company made improper deductions from employees’ wages for housing and meals.
The FLSA requires that covered, nonexempt employees be paid at least the federal minimum wage of $7.25 for all hours worked, plus time and one-half their regular rates, including commissions, bonuses and incentive pay, for hours worked beyond 40 per week. Additionally, employers must maintain accurate time and payroll records.
For more information about federal wage laws, call the Wage and Hour Division’s toll-free helpline at 866-4US-WAGE (487-9243) or its Dallas office at (817) 861-2150. Information also is available at http://www.dol.gov/whd.
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