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News Release

Panaderia Chuy Bakery in Austin, Texas, pays $244,770 in minimum, overtime back wages to workers following US Labor Department investigation

AUSTIN, Texas — Los Poblanitos LLC, doing business as Panaderia Chuy Bakery, has paid a total of $244,770 in back wages owed to 101 restaurant and bakery employees at two of the company's locations in Austin. The unpaid wages resulted from violations of the Fair Labor Standards Act's minimum wage, overtime and record-keeping provisions that were uncovered during an investigation by the U.S. Department of Labor's Wage and Hour Division.

"This company profited from mistreating its hardworking, vulnerable, low-wage workers," said Cynthia Watson, the Wage and Hour Division's regional administrator in the Southwest. "Employees worked as many as 75 hours in a workweek without overtime compensation. This is illegal."

The investigation, conducted by the division's San Antonio District Office, found that cooks, cashiers and bakery staff did not always receive at least the federal minimum wage of $7.25 per hour, and were not paid the proper overtime rate of time and one-half for hours worked beyond 40 in a workweek. Instead, the employees were paid fixed salaries without regard to actual hours worked or the FLSA's requirements. The employer also failed to maintain the required record keeping.

Panaderia Chuy Bakery produces bakery and pastry goods, and operates restaurants on Research Boulevard and East William Cannon Drive. The company has agreed to comply with the FLSA in the future and the back wages owed have been paid in full.

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 San Antonio office at 210-308-4515. Information also is available at

Wage and Hour Division
November 15, 2012
Release Number
Media Contact: Juan Rodriguez