Need a primer on what not to during a federal investigation of Fair Labor Standards Act (FLSA) compliance?


Look no further than a recent Tenth Circuit Court of Appeals case: Perez v El Tequila LLC.


Problems with records


In this case, the federal court found that El Tequila, a restaurant chain, intentionally committed several violations of the FLSA, including:


Altering payroll records


Encouraging employees to lie to investigators, and


Withhold requested records.


Employee complaints about unpaid wages prompted several investigation from the Dept. of Labor. Because of El Tequila’s deceptive recordkeeping, it’s now on the hook for $2.1 million worth of back pay to its employees.


While this case is an extreme example, it’s always a good idea to regularly review Payroll records to make sure all hours worked have been paid correctly.


More info: