Indiana-based restaurant The Journey is to award $45,828 (£35,525.87) in back pay to 16 employees after violating overtime and record keeping regulations.
An investigation by the Wage and Hour Division (WHD) at the US Department of Labor found that 'back of house' employees, such as line cooks, dishwashers and food preparation staff, worked an average of 63 hours a week for a flat rate salary that did not take into consideration the number of hours employees had worked.
This meant that The Journey violated overtime regulations included within the Fair Labor Standards Act (FLSA) when employees worked more than 40 hours in a working week without being paid extra for the overtime. Furthermore, the restaurant also failed to record the number of hours employees worked, which violated the record keeping requirements of the FLSA.
Patricia Lewis, district director, Indianapolis at the Wage and Hour Division, said: "This investigation represents the US Department of Labor's commitment to ensuring employees receive all the wages they have rightfully earned, and that employers compete on a level playing field. Employers can avoid wage violations by contacting us for assistance to ensure they are in compliance with the law."