US Department of Labor recovers $101K for 36 workers denied full minimum wage, overtime pay by 3 Baton Rouge area employers

NEW ORLEANS - The U.S. Department of Labor has recovered $101,125 in back wages from three Baton Rouge area Japanese restaurants after a federal investigation found federal minimum wage and overtime violations.

The department's Wage and Hour Division investigated the pay practices of Gulfcoast Restaurant Group LLC, operating as Umami Japanese Bistro in Baton Rouge; Geishaville LLC, doing business as Geisha, Sushi with a Flair in Prairieville; and Chopstix LLC, operating as Geisha, Sushi with a Flair in Denham Springs. The three restaurants share the same owners.

At Umami Japanese Bistro, division investigators found that servers were required to share their tips with non-tipped kitchen staff, such as cooks and dishwashers, in violation of the Fair Labor Standards Act. This practice invalidated the employer's use of the tip credit and required the employer to pay more than $66,000, which accounted for full minimum wage payments owed to the affected employees. Additionally, workers were reimbursed $7,450 in tips improperly diverted to kitchen staff.

At the two Geisha, Sushi with a Flair restaurants, the division found that salaried, nonexempt kitchen employees were collectively denied more than $27,000 in overtime pay as a result of the employers' failure to pay an overtime premium of time and one-half the regular rate of pay for all hours worked over 40 in a workweek.

The employers paid a total of $101,125 in back wages to the affected employees for the FLSA violations. They also paid $2,325 in penalties for requiring servers to share tips with kitchen staff.

"The FLSA violations found at these restaurants are far too common in the service industry," said Wage and Hour Division District Director Troy Mouton, in New Orleans. "Employers who claim a tip credit must ensure that they comply with the rules involving tipped employees, and they also must demonstrate that overtime is paid properly to those who have earned it."

Workers and employers can call the Wage and Hour Division with questions and requests for compliance assistance at its toll-free helpline, 866-4US-WAGE (487-9243). The agency's PAID program offers employers an opportunity to self-report and resolve potential minimum wage and overtime violations under the FLSA, as well as certain potential violations under the Family and Medical Leave Act.

Learn more about the Wage and Hour Division, including a search tool that workers can use if they think they may be owed back wages collected by the division. Download the agency's free timesheet app for iOS and Android devices to track hours and pay.