Julie Su Acting United States Secretary of Labor | Official Website
ANN ARBOR, MI – An Ann Arbor restaurant operator who received nearly $950,000 in federal assistance to retain employees during the pandemic has agreed to pay $196,531 in back wages and liquidated damages to 20 workers following a U.S. Department of Labor investigation into illegal pay practices.
A consent order and judgment entered on June 14, 2024, by the U.S. District Court for the Eastern District of Michigan resolves allegations against Adam Baru, owner of Cascabel Ventures LLC. The department's September 2023 lawsuit sought to recover back wages and liquidated damages and obtain an injunction against Baru and his restaurants to prevent future violations of the Fair Labor Standards Act (FLSA).
The Wage and Hour Division’s investigation found that from Sept. 21, 2020, to July 3, 2022, Baru, as joint operator of Isalita and Mani Osteria & Bar, failed to pay workers overtime at time and one-half their regular rate for hours over 40 in a workweek.
During litigation, Baru admitted to accepting a loan from the U.S. Small Business Administration’s Paycheck Protection Program; public records indicate the two restaurants received $942,736 in February 2021. He also acknowledged creating a payment system that did not combine hours worked at both restaurants to ease financial burdens during the pandemic. Despite benefiting from the PPP loan, Baru did not begin paying overtime properly until the division’s investigation began.
“Regardless of their cause, economic downturns do not excuse an employer’s obligation to pay full and legally earned wages to employees or comply with federal wage regulations,” said Wage and Hour Division District Director Timolin Mitchell in Detroit. “The Wage and Hour Division is committed to holding employers who violate federal labor laws accountable.”
As part of the consent order, Baru and Cascabel Ventures have also agreed to pay $10,069 in civil money penalties assessed by the department. The court granted an injunction forbidding future violations.
“We encourage employers and workers to contact the Wage and Hour Division with questions about complying with federal law,” Mitchell added.
“The department will use all legal tools available to hold employers accountable when they fail to meet their FLSA obligations,” said Regional Solicitor Christine Heri in Chicago. “With this consent judgment, the defendants have been held responsible for failing to pay these workers the wages they rightfully earned during the coronavirus public health emergency.”
Attorney Sheila Naughton from the department’s Regional Office of the Solicitor in Chicago litigated the case.
For more information about FLSA compliance or if you think you may be owed back wages collected by the division, contact its toll-free helpline at 866-4US-WAGE (487-9243). Workers and employers can call confidentially with questions regardless of location; assistance is available in more than 200 languages. Additionally, download the agency’s Timesheet App for accurate tracking of hours and pay.
U.S. Department of Labor v. Cascabel Ventures LLC d/b/a Isalita and Mani Osteria & Bar and Adam Baru
Case No: 23-cv-12366-SKD-KGA
