Wage and Hour Division (WHD)
Archived News Release — Caution: Information may be out of date.
Date: October 15, 2014
Contact: Leo F. Kay or Jose A. Carnevali
Phone: 415-625-2630 or 415-625-2631
U.S. Department of Labor
Wage and Hour Division
Release Number: 14-1716-SAN (SF-67)
Bay Area Vietnamese restaurant to pay more than $93,000 in back wages, damages
SAN FRANCISCO -- Eighteen workers at Xanh Restaurant in Mountain View will be paid $93,381 in back wages and damages following an investigation by the U.S. Department of Labor’ Wage and Hour Division. The restaurant owner also must pay civil money penalties to the federal government.
Investigators with the division’s San Francisco district office found that the owner of Xanh Restaurant did not pay all employees time-and-a-half for hours worked over 40 per week and instead paid those employees at straight time. These straight-time payments were disguised on the payroll as bonuses.
“When an employee works beyond 40 hours in a workweek, every hour worked after that needs to be paid at time-and-a-half,” said Susana Blanco, district director for the San Francisco Wage and Hour Division office. “This settlement puts money back in the hands of employees who rightfully earned it, and helps to level the playing field for those businesses that abide by the law.”
The Fair Labor Standards Act requires that covered employees be paid at least the federal minimum wage of $7.25 per hour, as well as one and one-half times their regular rates for every hour they work beyond 40 per week. The law also requires employers to maintain accurate records of employees’ wages, hours and other conditions of employment.
The FLSA provides that employers who violate the law are generally liable to employees for their back wages and an equal amount in liquidated damages, which are paid directly to the affected employees.
For more information about federal wage laws administered by the Wage and Hour Division, call the agency’s toll-free helpline at 866-4US-WAGE (487-9243). Information is also available at http://www.dol.gov/whd.
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