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News Brief

Charanda Mexican Grill & Cantina in Concord and Statesville, North Carolina, pays 13 workers over $104K in back wages

Employer name: Charanda of Concord Inc. and Charanda, Inc., doing business as Charanda Mexican Grill & Cantina

Investigation site: 8629 Concord Mills Boulevard, Concord, North Carolina 28027 and 1841 E. Broad Street, Statesville, North Carolina 28625

Investigation findings: Investigators from the U.S. Department of Labor's Wage and Hour Division found that Charanda Mexican Grill & Cantina violated provisions of the Fair Labor Standards Act. Investigators determined that servers received only tips and were not paid any wages directly by the employer.

An employer that claims a tip credit (one who employs tipped employees, and credits the tips those workers receive from customers toward their obligation to pay those employees minimum wage) is required to pay a tipped employee at least $2.13 per hour in direct wages. That amount, when added to the tips received by the worker, must add up to at least the current federal minimum wage of $7.25 per hour. If earnings fall short of that amount, the employer must make up the difference. Additional violations were found when cooks working approximately 60 hours per week were denied overtime for their hours worked beyond forty in a workweek. The employer also failed to keep accurate and complete time records.

Resolution: To remedy the FLSA violations, the employer has paid 13 workers a total of $104,394 in minimum wage and overtime back wages. The employer has agreed to comply with the FLSA in the future.

Quote: "Not paying low-wage workers wages that they have lawfully earned earn can cause significant financial hardships for families, said Frank McGriggs, the Wage and Hour Division's deputy regional administrator in Atlanta. "Unfortunately, these types of labor violations are all too common in the restaurant industry. That's why the agency is committed to protecting restaurant workers and responsible employers and to ensuring everyone has the opportunity to succeed."

Wage and Hour Division
September 1, 2015
Release Number
Media Contact: Michael D'Aquino
Media Contact: Lindsay Williams
Phone Number