After an investigation into the wage-paying practices of Chili Thai, a set of five restaurants in the Tacoma area, the Department of Labor (DOL) recovered over $125,000 for 51 workers. The DOL’s Wage and Hour Division contend that the restaurant did not pay overtime for hours over 40 in a workweek, violating the Fair Labor Standards Act (FLSA). The DOL recovered $64,183 in back wages and the same amount in liquidated damages for the workers. The company was also fined $9,163 in civil penalties for the “reckless nature” of the violations.
How the FLSA was violated
Chili Thai paid employees on a semi-monthly basis. Workers would get overtime for hours worked over 88 hours in the pay period. The FLSA requires overtime be paid for any hours over 40 per week. When employees worked long hours, they were underpaid. Employees gave up their work-life balance without getting properly compensated.
Workers who regularly work overtime are more prone to depression and anxiety. When employers don’t pay overtime correctly, it hurts the worker, their family and the community.
Restaurant complies
Chili Thai changed to bi-weekly pay periods, which will help ensure future compliance with the FLSA. The employer will also pay overtime for any hours over 40 worked each week. A bi-weekly pay period should help workers keep track of their overtime hours owed to make sure their paychecks are accurate.
Wage and Hour Division District Director Thomas Silva in Seattle said, “We urge employers to review their practices and avoid costly consequences for violating the law.”
This should be a reminder to all businesses to check their records to ensure payroll is being handled correctly. Workers and employers, regardless of where they are from, can contact the Wage and Hour Division to get compliance assistance and resources. Look for the DOL Timesheet app, available for free for both Android and iOS, that can help track your own hours and pay to ensure accuracy.
