Department of Labor: 34 Boston Restaurants Owe $1.3 Million in Back Wages

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http://wepartypatriots.com/wp/2012/04/02/dol-34-boston-restaurants-owe-1-3-million-in-back-wages/

According to the U.S. Department of Labor (DOL), 500 employees at 34 popular Boston area restaurants are owed a total of $1.3 million in back wages. The DOL has an ongoing enforcement initiative that has found significant Fair Labor Standards Act violations over the past year and a half, according to the Boston Globe

Some restaurants paid employees flat salaries worked without overtime pay, failed to combine hours worked at multiple locations for overtime purposes, paid incorrect overtime rates to tipped employees, and made illegal deductions from employees’ wages. The agency also uncovered a growing trend of businesses misclassifying restaurant workers as independent contractors as a way to avoid minimum wage.

“We were surprised by the results. This is substantial,” said George A. Rioux, the division’s district director in Boston. “We’re not getting the change in behavior we want. Companies are paying back wages and agreeing to compliance and it’s not enough to finally wake up and see that we’re serious. Our intent is to achieve compliance and maintain compliance in the future.”

Restauranteurs exploiting workers isn’t a novel concept to those who have worked in the industry, but most people in food service need the jobs despite the revolving door and cloudy standards. Secretary of Labor Hilda L. Solis reiterated this point in a statement:

“The restaurant industry employs some of our country’s lowest paid workers, who are vulnerable to exploitation. In response to the extensive level of noncompliance we discovered, we will expand our efforts to bring the industry into compliance to ensure that employees receive the minimum wage and overtime wages required by law.”

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