WILKES-BARRE, PA — In a decisive move to uphold labor rights, the U.S. Department of Labor recently recovered $1.3 million in back wages, withheld tips, and liquidated damages for 51 employees at La Tolteca Authentic Mexican Restaurant in Wilkes-Barre. This outcome follows a thorough investigation and subsequent litigation, revealing significant violations of the Fair Labor Standards Act (FLSA) by the restaurant and its owner, Carlos De Leon.
The investigation, conducted by the Wage and Hour Division, uncovered that servers and bartenders were unlawfully required to surrender a portion of their tips based on sales, rather than contributing to a legitimate tip pool. In addition, the restaurant failed to maintain records validating their tip pool, further complicating compliance with federal laws. Moreover, three non-exempt salaried cooks were denied overtime pay for hours exceeding the standard 40-hour workweek, a clear breach of the FLSA.
In granting summary judgment, the U.S. District Court for the Middle District of Pennsylvania confirmed these violations. The consent judgment mandates that La Tolteca Wilkes-Barre Inc. and De Leon compensate the affected workers $651,778 in back wages and restored tips, with an equivalent amount in liquidated damages. Due to the willful nature of these infractions, the court also imposed a $26,443 civil money penalty.
Wage and Hour Administrator Jessica Looman emphasized, “Customer tips for good service are the property of the people who earned them, not their employers.” She underscored that any misuse of tips by management infringes on workers’ rights, an issue prevalent in the restaurant industry. The department remains steadfast in ensuring all workers receive their rightful wages and that businesses adhering to the law do not suffer an unfair disadvantage.
This judgment serves as a stark reminder to restaurant industry employers that illegal practices concerning wages and tips can lead to severe repercussions. Solicitor of Labor Seema Nanda stated, “The U.S. Department of Labor will use every tool available, including litigation, to prevent employers from depriving workers of their wages.”
The case was investigated by the Wage and Hour Division’s Wilkes-Barre District Office and litigated by the regional Office of the Solicitor in Philadelphia. This action aims to enforce labor laws and protect workers’ rights nationwide.
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