Pepperoncini’s in Oakdale forced to pay $24K for violating federal overtime rules
Pepperoncini’s Pub in Oakdale was forced to pay $12,034 in back wages and an equal amount in liquidated damages to four employees after failing to pay them overtime when they worked more than 40 hours in a work week.
Liquidated damages are an amount equal to the amount owed in unpaid wages to compensate for the harm caused by a breach of contract.
A U.S. Department of Labor Wage and Hour Division investigation found Pepperoncini’s violated the overtime and recordkeeping requirements of the Fair Labor Standards Act.
Ownership of Pepperoncini’s Pub could not be reached.
Wage and Hour found that from May 2017 to May 2019, the restaurant paid one kitchen manager and three assistant kitchen managers straight-time hourly rates regardless of the number of hours that they worked. Federal law requires hourly employees to receive time-and-one-half their regular rates of pay for overtime hours.
Pepperoncini’s also violated Fair Labor Standards Act requirements by failing to keep records of employee tips.
“We see too many cases like this one involving restaurants that do not pay their back-of-the-house employees proper overtime and that do not follow the tip credit rules,” said U.S. Department of Labor Philadelphia Regional Counsel Adam Welsh. “It is important for all employees in the restaurant industry, large and small, to take steps to ensure their employees receive the wages they are entitled to under the law.”
Wage and Hour Division District Director John DuMont said other employers should use this investigation as an opportunity to review their own pay practices to make sure they comply with the law.
“We encourage all employers to reach out to us for guidance and to use the wide variety of tools we provide to help them comply with the law and avoid violations like those found in this case,” said DuMont.
Paul Guggenheimer is a Tribune-Review staff writer. You can contact Paul at 724-226-7706 or [email protected].