Chuy’s to pay more than $100,000 in back wages for violating minimum wage, overtime requirements

Chuy’s to pay more than $100,000 in back wages for violating minimum wage, overtime requirements
(Source: KSLA News 12)

TUCSON, Ariz. (KOLD News 13) - A news release from the U.S. Department of Labor says an investigation into Chuy’s Mesquite Broiler by the Wage and Hour Division determined the restaurant must pay $114,964 in back wages and damages to 55 employees and $20,372 in civil penalties for violating minimum wage and overtime requirements of the Fair Labor Standards Act.

WHD investigators found the employer failed to pay some employees for all the time that they worked. The employer violated FLSA provisions when the wages they paid failed to meet the federal minimum wage of $7.25 per hour for all the hours they worked. Overtime violations resulted from the employer’s practice of paying employees for only their first 40 hours each workweek by payroll check, paying for any overtime hours either in cash, or in a separate check, at straight-time rates. The employer also failed to record accurately the total number of hours employees actually worked, a violation of FLSA recordkeeping requirements.

“Employers have an obligation to record and pay their employees for all the hours that they work,” said Wage and Hour Division District Director Eric Murray in Phoenix, Arizona. “The U.S. Department of Labor is committed to ensuring that businesses that violate labor laws do not gain an unfair advantage over those that play by the rules. We encourage employers and employees to reach out to us to familiarize themselves with their obligations and rights under 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, confidential calls, or in-person visits to local WHD offices.

For more information about the FLSA and other laws enforced by the Wage and Hour Division, contact the toll-free helpline at 866-4US-WAGE (487-9243). Employers who discover overtime or minimum wage violations may self-report and resolve those violations without litigation through the PAID program. Information is also available at https://www.dol.gov/agencies/whd.

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