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October 28, 2004
Mexican Restaurants Pay More than $277K in Back Wages

Three Mexican restaurant operators in Georgia have paid $277,043 in back wages to 99 employees after the Department of Labor accused them of violating the Fair Labor Standards Act (FLSA).

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Following a review of each company's records from March 2002 to March 2004, Wage and Hour investigators said that four locations failed to keep and maintain accurate employment records and that in all situations, servers and helpers were not paid minimum wage but worked for tips only. The employer also failed to pay employees a rate of one-and-one half times the regular base rate for all hours worked over 40 in a work week, according to the department.

Amigo Mexican Restaurants in Chattanooga and Johnson City paid $123,613 in back wages to 51 employees. The department alleges that servers were required to attend meetings and buy uniform shirts which reduced their pay below minimum wage.

Los Three Amigos in Kimball paid $93,122 to 20 employees. The department alleges that cooks and dishwashers earned a salary that did not equal minimum wage for the number of hours worked.

Las Margaritas Restaurant in Cleveland paid $60,308 in back wages to 28 employees. Cooks and dishwashers earned a salary that did not equal minimum wage for the number of hours they worked, according to the department.


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