Unpaid Overtime and Minimum Wage Violations Found at Restaurants

A U.S. Department of Labor investigation found that the owner of two Boise restaurants violated federal wage laws, resulting in lost pay for hundreds of workers. The investigation determined that 388 employees were denied proper minimum wage and overtime compensation in violation of the Fair Labor Standards Act (FLSA). Federal investigators found that the restaurants illegally required tipped employees to share tips with managers and supervisors. Because management cannot participate in tip pools, this practice invalidated the employer’s tip credit and led to minimum wage and overtime violations. The employer also deducted uniform costs from workers’ pay, pushing wages below the legal minimum. In addition, employees were only paid overtime after working more than 80 hours in a pay period, rather than receiving time-and-one-half pay for hours worked over 40 in a workweek, as required by law. Some workers were also misclassified as overtime-exempt managers despite not meeting the legal criteria. As a result, the Department of Labor recovered $366,261 in back wages for affected employees and assessed an additional $47,282 in civil penalties for willful violations. This case highlights common wage violations in the restaurant industry and reinforces that employees have the right to keep their tips, earn minimum wage, and receive overtime pay under federal law.