DOL sues Los Arcos Mexican Grill & Seafood for time and attendance violations

A testimonial on Los Arcos Mexican Grill & Seafood's website says the Nashville restaurant is the best place in town to get authentic south-of-the-border food, but diners might not find the establishment quite as enticing upon finding out it was violating the Fair Labor Standards Act (FLSA).

In a recent investigation by the Department of Labor, Wage and Hour Division representatives revealed employees were not being paid minimum wage for their time and attendance or receiving proper compensation for overtime. To remain in compliance with the FLSA, restaurant owners must make sure their workers are receiving $7.25 per hour between their hourly earnings and tips. If gratuity and wages do not equal that total, it's the employer's responsibility to make up the difference.

Because the FLSA provides specific provisions for tipped employees, restaurant owners are often vulnerable to labor rights violations. If owners maintain accurate records and use advanced payroll processing services, they might find it's easier to stay in compliance and avoid DOL interference.

"The Wage and Hour Division will continue to ensure that these workers, including employees of both full- and limited-service restaurants, receive their full pay, and employers who follow the law do not face unfair competition from those who ignore it," said Sandra Sanders, the Nashville District Office director.