Three Ohio Restaurants Called Out for Second Round of Ohio Employment Violations

Dayton, OHThe US Department of Labor (DOL) has gone after a chain of restaurants from Ohio in an Ohio employment case in an effort to retrieve $285,000 in back wages that should have been paid to no fewer than 171 workers. Three El Rancho Grande restaurant locations in the state were found by investigators to have violated the Fair Labor Standards Act (FLSA).

A release by States News Service (10/17/12) noted that workers were not paid proper wages and overtime pay associated with work performed at the three locations identified: Gran Fiesta Inc. in Cincinnati, El Rancho Inc. in Sharonville and WRGRM LCC in Dayton. While those are the corporate names of each location, the entities all do business under the banner El Rancho Grande.

An investigation by the Labor Department's Wage And Hour Division uncovered various violations to Ohio Labor Laws. Some kitchen workers were paid a flat fee each week that, when computed, fell below the required minimum wage per hour. The workers, according to the investigation, were not paid overtime for hours worked beyond 40 hours in a week in accordance with Ohio Labor and Employment Law.

Further violations of Ohio Employment Law included a failure to maintain accurate time cards and payroll records as required under law.

In addition to the kitchen staff, according to the Ohio employee rights investigation server's pay fell below minimum wage levels through the performance of work prior to, and following their normal shifts. There were also deductions for uniforms, which combined to lower their pay even further. Working beyond 40 hours in any given week should have also netted the employees overtime pay. Often the non-payment of overtime can result in an overtime lawsuit.

The federally mandated minimum wage is $7.25 per hour. While individual states have the right to set their minimum standards above that level, they cannot dip below the federally mandated rate, which is perceived as the absolute minimum.

"Low-wage workers such as restaurant servers and kitchen staff are far too often taken advantage of because they are reluctant to question employers about their pay and benefits," said George Victory, district director of the division in Columbus, in a statement. "We are committed to ensuring that all workers receive their rightful wages and benefits."

The DOL filed the complaint against the three restaurants as well as co-owners Francisco Magana and Juan Hernandez in US District Court in Dayton with the assistance of Ohio employment attorneys.

This is not the first time the three restaurants have run afoul of Ohio employment labor law. Ten years ago the employer agreed to pay $100,000 in back wages following a similar investigation by the Wage and Hour Division of the DOL. At issue were wage violations and falsification of payroll records.

For these most recent violations of Ohio employee rights, the Department of Labor is requiring the defendant to restore all back wages owed, as well as an equal amount in liquidated damages. Included in the complaint is a requirement, going forward to comply with minimum wage, Ohio overtime, the keeping of accurate payroll records and upholding child labor provisions as defined in the FLSA.