The U.S. Department of Labor has recovered $253,636 for 19 restaurant workers employed by X.M. Investment LLC and Beemer Investments LLC, both operating as Crackin’ Crab in Albuquerque, New Mexico. The recovery follows an investigation by the department’s Wage and Hour Division.
The investigation covered two franchise locations: 4959 Pan American Freeway NE, Suite C, and 2100 Louisiana Blvd. NE, Suite 413 in Albuquerque. Findings revealed that the employers violated federal law by withholding a portion of employees' tips, which invalidated their tip credit and resulted in failure to pay the required minimum wage. Additionally, the employers breached overtime provisions by paying time and one-half the regular rate of pay after 80 hours in a pay period instead of time and one-half of employees’ hourly wages for hours worked over 40 in a workweek.
As a result of these violations, $126,818 was recovered in owed wages along with an equal amount in liquidated damages for the affected workers. Furthermore, a civil money penalty of $616 was assessed against the employers for withholding employee tips.
“Restaurant workers depend on their tips and overtime pay to support themselves and their families,” said Wage and Hour District Director Evelyn Ortiz in Albuquerque. “Tips cannot be kept by the employer under any circumstances. The U.S. Department of Labor remains committed to protecting our nation’s workers.”
Crackin’ Crab was established in 2015 and operates casual dining seafood restaurants at four locations across New Mexico—in Albuquerque and Santa Fe—and two locations in Amarillo, Texas.
