Garcia's Mexican Restaurant in Franklin has paid $179,878 in back wages to 40 employees to resolve minimum wage violations of the Fair Labor Standards Act following a U.S. Department of Labor’s Wage and Hour Division investigation.
According to a WHD news release, investigators found that Garcia’s Mexican Restaurant violated the FLSA when the employer required servers to pay between $7 and $10 per shift into a tip pool that the restaurant used to pay the hourly rates of non-tipped workers.
WHD also found that the employer had retained the credit card tips that hosts earned on carryout and to-go orders, resulting in additional FLSA minimum wage violations, in addition to recordkeeping violations.
“The Wage and Hour Division is committed to ensuring that employees receive the wages they have earned, and that employers clearly understand their responsibilities,” Nashville Wage and Hour Division District Director Nettie Lewis said in the news release. “The outcome of this investigation serves as a reminder to all employers to review their pay practices and to confirm that workers are being paid as the law prescribes. We will continue to work to level the playing field for employers who play by the rules.”
The department offers a variety of resources for both workers and employers.
Garcia's Mexican Restaurant did not return a request for comment.