U.S. Department of Labor Resolves Blue Springs Restaurant Wage Violations

BLUE SPRINGS, MO – The U.S. Department of Labor’s Wage and Hour Division and a Blue Springs buffet restaurant have reached an agreement to resolve violations of the Fair Labor Standards Act (FLSA). The Wage and Hour Division determined Blue Springs-based Legend of Asia and its manager, Yu Min Xiao, failed to comply with FLSA minimum wage, overtime, and record-keeping provisions.

As a result, 17 workers will receive a total of $150,000 – representing $75,000 in back wages and an equal amount in liquidated damages. The restaurant will also pay a civil money penalty of $10,000 for willful violations.

Investigators found the employer paid cooks a monthly salary and provided them housing, meals, and transportation. Given the number of hours the restaurant required cooks to work, their compensation did not equal at least the minimum wage, and overtime was not paid when they worked more than 40 hours in a workweek. The employer also failed to pay servers overtime.

Under terms of a consent judgment, entered in the U.S. District Court for the Western District of Missouri, Legend of Asia will implement a computerized time-keeping system; have a third party audit its time and payroll practices for compliance; provide payroll statements to employees that clearly articulate the amount earned, as well as deductions for items provided such as housing and food; and provide training and notices to all employees regarding the requirements of the FLSA.

“Companies that fail to pay their workers in accordance with the law gain an unfair advantage over their competitors,” said Wage and Hour Division Regional Administrator Karen Chaikin, in Chicago. “Through its education and outreach efforts, the Department continues to ensure that employers and employees understand their responsibilities and rights under the Fair Labor Standards Act.”

Workers and employers with questions about the FLSA and all of the federal wage laws administered by the Division should call the agency’s toll-free helpline at 866-4US-WAGE (487-9243).  All calls are confidential.  More information is available online at http://www.dol.gov/whd/.