Business will also pay 118K in wages, damages to 21 workers

 

As long as employees’ pay and time records are complete and accurate, employers can pick and use their own timekeeping methods.

 

But some employers are learning that if they fail to keep accurate records, the Dept. of Labor (DOL) may just step in and tell them how to track employees’ pay and hours.

 

Case in point: Azteca Restaurante Mexicano Inc. must implement computerized timekeeping system after DOL investigators found Fair Labor Standards Act (FLSA) violations.

 

First, the investigators found overtime violations. Azteca paid kitchen staff fixed salaries — $550 to $675 per week – regardless of how many hours staffers worked. Plus, Azteca computed overtime pay for servers based only on their cash wages, instead of on the minimum wage of $7.25 per hour.

 

In addition DOL investigators said the restaurant illegally deducted 3% of servers’ credit card sales from their tips, resulting in some servers earning less than the minimum wage.

 

Recordkeeping violations were also discovered.

 

Result? To resolve the claims, Azteca will install the computer system and pay $118,000 in back wages and damages to 21 workers.

 

Calculating overtime carefully

 

Many FLSA violations involve inaccurate overtime calculations, such as not including all hours.

 

So that’s a good place to focus your double-checking efforts.

 

More info: www.bit.ly/dol547