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November 01, 2011
TN Restaurant Company Agrees to Pay $40k in Back Wages

Atlas Inc., doing business as two La Campina Mexican Grill restaurants in Tennessee, has agreed to pay $39,232 in minimum and overtime back wages to 23 restaurant workers for alleged violations of the Fair Labor Standards Act (FLSA).

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Investigations conducted by the Wage and Hour Division’s Knoxville Area Office reported that the company willfully and repeatedly failed to record and compensate employees for all hours of their work, in violation of the FLSA’s minimum wage, overtime, and record-keeping provisions. The two restaurants are located in Piney Flats and Kingsport, Tennessee.

The investigators interviewed employees, reviewed payroll documents, and determined that restaurant workers often worked more than 40 hours per week without receiving overtime compensation, and were paid a flat salary that did not yield at least the minimum wage of $7.25 for all hours of their work. Investigators also found that the company created and maintained inaccurate records of its employees’ work hours, rates of pay, and wages actually paid.

La Campina Mexican Grill restaurants and the owner have agreed to come into compliance with the FLSA, and have committed to implementing new business procedures to record and compensate employees accurately for all hours of their work.

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