A Korean restaurant, based in Boston, has been mandated to pay $320,000 in back wages following a finding by the U.S. Department of Labor’s Wage and Hour Division that it failed to inform some workers about their cash wage and tip credit. The department established that the restaurant was not adhering to the Fair Labor Standards Act (FLSA), with 59 current and former workers included in the dispute.
As per a media release from the Department of Labor, SOJUba, situated at 1265 Boylston St. in Boston's Fenway neighborhood, permitted ineligible workers to participate in the tip pool, which resulted in some employees receiving tips they had not earned. This led to the disqualification of the restaurant's ability to take a tip credit, thereby preventing several workers from earning the federal minimum wage. The FLSA allows an employer to take a tip credit towards its minimum wage and overtime obligations for tipped employees, provided these employees receive tips amounting to at least the minimum wage and overtime compensation.
Carlos Matos, wage and hour division district director in Boston, stated: "The Fair Labor Standards Act clearly spells out an employer’s responsibilities to pay proper minimum wage and overtime rates to employees and forbids employers from attempting to coerce workers or tell them not to participate in a Wage and Hour Division investigation. When employers deliberately attempt to ignore the law’s requirements, the U.S. Department of Labor will actively pursue damages and penalties in addition to recouping back wages for employees hurt by such behavior."
Investigators discovered that SOJUba did not ensure its employees were compensated for a full 40-hour work week. Additionally, they found evidence suggesting that restaurant owners had coached employees on how to respond during inquiries related to the investigation. Consequently, SOJUba has been ordered to pay $147,500 in back wages along with an equal amount in liquidated damages. The restaurant is also required to pay $25,000 in punitive damages for retaliation.
