The DoL said that Mugen also violated recordkeeping laws by failing to keep accurate records of how many hours staff worked, the dates of birth for younger employees, and the addresses of some workers. It ordered the company to pay a $1,915 civil money penalty for these specific violations. Mugen also violated federal child-labor laws by allowing three 15-year-old workers to work more than three hours on a school day, more than 18 hours in a school week, and past 7:00 p.m. "Tips are the property of the worker and, under no circumstances, may employers keep any part of their employees' tips." "Tipped workers in the food services industry rely on their hard-earned tips to make ends meet," Richard Blaylock, district director of the DOL's Wage and Hour Division in Raleigh, North Carolina, said in a statement. Mugen owes the workers the difference between their paid cash wage and the federal minimum wage, which is $7.25 an hour, the DoL said. The DoL said that, because Mugen kept a percentage of staff's tips, it invalidated its claim to a tip credit, meaning workers were paid less than the federal minimum wage. Mugen Inc., which operates Jay's Kitchen in Goldsboro, North Carolina "denied the workers their full wages by keeping portions of their earned tips," and thus violated the Fair Labor Standards Act, the DoL said. Jay's Kitchen also violated child-labor and recordkeeping laws, the DoL said.Ī North Carolina restaurant that specializes in Asian-American fusion cuisine has been ordered to pay $157,287 to 65 staff after failing to give them the tips they had earned, the US Department of Labor said on Tuesday. The restaurant has been ordered to pay $157,287 to 65 staff, the Department of Labor said. A North Carolina restaurant has been ordered to give back pay to staff after failing to give them their tips.
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