Home » US business news » Wage and Hour Division Recovers Wages for Luxe Bar & Grill Employees
Wage and Hour Division Recovers Wages for Luxe Bar & Grill Employees
https://www.whatjobs.com/news/usa/us-business-news/wage-and-hour-division-recovers-wages-for-luxe-bar-grill-employees
By Hugh Fort in US business news, posted August 11, 2024
An investigation conducted by the U.S. Department of Labor's Wage and Hour Division has resulted in the recovery of $45,428 in wages for 11 servers employed by Luxe Bar & Grill in Troy. This includes $22,714 in back wages and an equal amount in liquidated damages. The restaurant's operators, Kara Bongiovanni and Old Woodward Ventures LLC, were found to have violated labor laws.
Violations and Penalties
Luxe Bar & Grill and Kara Bongiovanni have been ordered to pay $4,570 in civil money penalties due to violations of the Fair Labor Standards Act’s (FLSA) overtime and recordkeeping provisions. The violations stemmed from improper payroll practices that denied employees their rightful earnings.
Court Order and Future Compliance
On August 8, 2024, U.S. District Judge George Carem Steeh entered a consent order and judgment requiring Luxe Bar & Grill and Bongiovanni to comply with FLSA regulations. In future, the restaurant must provide employees with relevant FLSA fact sheets and ensure they do not violate the act.
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Investigation Findings
Investigators discovered Luxe Bar & Grill and Bongiovanni were paying servers straight time for overtime "off the books" in cash. The company also failed to maintain accurate payroll records. As part of the agreement, the restaurant will implement an electronic time and recordkeeping system to ensure compliance.
“Luxe Bar & Grill’s practice of recording the hours and paying them off the books demonstrated they knew the law and chose to ignore it"
Timolin Mitchell, Wage and Hour District Director in Detroit, said:
“When employers knowingly shortchange workers of their rightfully earned wages, such as overtime, they literally take money out of the pockets of their employees.”
“Luxe Bar & Grill’s practice of recording the hours and paying them off the books demonstrated they knew the law and chose to ignore it.”
Regional Solicitor Christine Heri in Chicago added:
“Employers should know that the department will use all available tools to ensure compliance with the FLSA.”
“When employers pay their workers less than the required wage, they will be held accountable—even if they try to hide it by making those payments off the record.”
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