Houston Wing Stop Franchisee Pays $65,316 in Back Wages, Damages And Penalties To Resolve Violations Found by U.S. Department of Labor
HOUSTON, TX – After an investigation by the U.S. Department of Labor's Wage and Hour Division (WHD), Mylanwings Enterprises LLC – operator of a Wing Stop franchise in Houston, Texas – has paid $31,888 in back wages and an equal amount in liquidated damages to four employees and $1,540 in civil money penalties for willful violations of the Fair Labor Standards Act's (FLSA) overtime and minimum wage requirements.
WHD investigators found that the employer paid one employee a flat rate of $500 for more than 93 hours of work over a three-week period, resulting in a rate of pay below the required $7.25 per hour. The employer also failed to combine the hours individual employees worked at two of the restaurant's locations during the same workweek when determining whether overtime was due. Instead, the employer paid these employees with two separate checks under two different names, all at straight time, regardless of the total number of hours worked. This practice resulted in overtime violations when employees had worked more than 40 hours total. WHD also cited the employer for recordkeeping violations.
"Pay practices that willfully and repeatedly violate the minimum wage and overtime requirements of the law will not be tolerated," said Wage and Hour Division District Director Robin Mallett in Houston, Texas. "This employer has been found in violation in previous investigations. The U.S. Department of Labor will use every tool available to enforce the law."
The Department offers numerous resources to ensure employers have the tools they need to understand their responsibilities and to comply with federal law, such as online videos, electronic toolkits, and in-person visits to local WHD staff.
Employers who discover overtime or minimum wage violations may self-report and resolve those violations without litigation through the PAID program. For more information about the FLSA and other laws enforced by the Division, contact the toll-free helpline at 866-4US-WAGE (487-9243). Information is also available at www.dol.gov/whd including a search tool for workers who may be owed back wages collected by WHD.
WHD's mission is to promote and achieve compliance with labor standards to protect and enhance the welfare of the Nation's workforce. WHD enforces Federal minimum wage, overtime pay, recordkeeping, and child labor requirements of the Fair Labor Standards Act. WHD also enforces the Migrant and Seasonal Agricultural Worker Protection Act, the Employee Polygraph Protection Act, the Family and Medical Leave Act, wage garnishment provisions of the Consumer Credit Protection Act, and a number of employment standards and worker protections as provided in several immigration related statutes. Additionally, WHD administers and enforces the prevailing wage requirements of the Davis Bacon Act and the Service Contract Act and other statutes applicable to Federal contracts for construction and for the provision of goods and services.
The mission of the Department of Labor is to foster, promote, and develop the welfare of the wage earners, job seekers, and retirees of the United States; improve working conditions; advance opportunities for profitable employment; and assure work-related benefits and rights.