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Press Releases

U.S. Department of Labor
Wage and Hour Division
Release Number: DOL-WH-10-557-DAL

Date: 

Thursday, June 3, 2010

Contact: 

Elizabeth Todd

Phone: 

972-850-4710

US Labor Department investigation nets more than $177,000 in overtime back wages for restaurant workers


Violations found in Colorado, Florida, Illinois, Tennessee, Texas and Virginia

DALLAS -- Dallas-based restaurant chain Texas De Brazil Corp. has agreed to pay $177,502 in overtime back wages to 715 former and current wait staff after U.S. Department of Labor Wage and Hour Division investigators found the workers were not properly paid overtime as required by the federal law.

“Employees are entitled to receive the wages they have rightfully earned,” said Cynthia Watson, regional administrator for the Wage and Hour Division in the Southwest. “In this case, tipped wait staff were not properly paid for overtime hours worked.”

The investigation by the Dallas office of the Wage and Hour Division found that Texas De Brazil, which owns and operates 12 full service restaurants nationwide, underpaid wait staff by failing to include tips earned in the regular rate of pay for proper calculation of overtime.

Through the agreement, the Labor Department has secured $26,979 for 119 employees in the Dallas-Fort Worth area; $22,662 for 90 employees in the Richmond-Fairfax, Va., area; $79,638 for 310 employees in Miami Beach, Miami and Orlando, Fla.; $9,563 for 64 employees in Denver, Colo.; $14,574 for 42 employees in Memphis, Tenn.; and $24,086 for 90 employees in Schaumburg, Ill.

Restaurants generally consider tips as part of an employee’s wages, but must pay at least $2.13 an hour in direct wages under the Fair Labor Standards Act. If the combined wages fall below the federal minimum wage of $7.25 an hour, the employer must make up the difference and bring the employee’s wages up to the minimum wage. Additionally, the FLSA requires that covered employees be paid at least the federal minimum wage for all hours worked, plus time and one-half their regular rates of pay for hours worked beyond 40 per week.

For more information about the FLSA and other federal wage laws, call the Wage and Hour Division’s Dallas District Office at 817-861-2150, or the division’s toll-free helpline at 866-4US-WAGE (487-9243). More information is also available at http://www.dol.gov/whd.

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U.S. Department of Labor releases are accessible on the Internet at www.dol.gov. The information in this news release will be made available in alternate format (large print, Braille, audio tape or disc) from the COAST office upon request. Please specify which news release when placing your request at (202) 693-7828 or TTY (202) 693-7755. The Labor Department is committed to providing America’s employers and employees with easy access to understandable information on how to comply with its laws and regulations. For more information, please visit www.dol.gov/compliance.