El Atlacatl Restaurant agreed to pay $50,717 in back wages to 39 employees after the U.S. Department of Labor’s Wage and Hour Division found that the Miami eatery had failed to ensure employees received the federal minimum wage and overtime payments required by the Fair Labor Standards Act (FLSA).
Investigators discovered that employees were paid a daily wage, regardless of the number of hours worked. Employees worked five to six days a week without being paid overtime when they exceeded 40 hours in a work week.

“When designing pay policies, employers must meet the requirements of both federal and state labor laws. Employers should never implement a pay system that circumvents FLSA regulations,” said Will Garnitz, director for the Wage and Hour Division’s Miami District Office.

To determine the amount of back wages owed, investigators reconstructed work hours, since the employer did not keep accurate time records of its employees. The investigation covered the period from November 2005 through November 2007.

The FLSA requires that covered employees be paid at least the federal minimum wage, and time and one-half their regular rates of pay, including commissions, bonuses and incentive pay, for hours worked over 40 per week. An employer of a tipped employee is only required to pay $2.13 per hour in direct wages if that amount combined with the tips received at least equals the federal minimum wage. If the employee’s tips combined with the employer’s direct wages of at least $2.13 per hour do not equal the federal minimum hourly wage, the employer must make up the difference. To qualify for an exemption from FLSA, employees generally must meet certain job duty and salary tests. Employers must also maintain accurate time and payroll records.

For more information about the FLSA, call the department’s toll-free helpline at 866-4US-WAGE (487-9243)