Scottsdale restaurants to pay more than $105K in back wages

A Scottsdale restaurant is to pay thousands of dollars in overtime back wages after a recent investigation.

Grassroots Kitchen and Tap and Twisted Grove Parlor, which share common ownership, failed to combine the number of hours worked by employees who worked in multiple locations, and therefore failed to pay overtime.

The employees often worked more than 40 combined hours, but were paid only straight-time for all those hours, according to a press release.

The three restaurants involved are Grassroots Kitchen and Tap #1, 8120 N. Hayden in Scottsdale; Grassroots Kitchen and Tap #2, 2119 E. Camelback Road in Phoenix; and Twisted Grove Parlor and Bar, 8220 N. Hayden Road in Scottsdale.

These restaurants, which shared ownership and operations and had joint employers, paid their employees on separate checks and the hours were not combined when determining when overtime was due.

“This case reflects a common violation found in an industry that employs large numbers of vulnerable workers,” stated Eric Murray, director of the Wage and Hour Division’s district office in Phoenix. “Other employers paying a similar manner should take note of this investigation. We strongly encourage workers who may be in similar situations, where their employer is not paying overtime after 40 hours of work in a workweek, to contact us with the knowledge that the information they share is kept confidential to the maximum extent of the law.”

To resolve the violations of the Fair Labor Standards Act, the restaurant company has agreed to pay $52,863 in back wages to 19 employees for overtime violations and an equal, additional amount of $52,863 in damages to the workers, the release stated. The employer has also agreed to pay $5,984 in penalties.

Joint employers are responsible, both individually and jointly, for compliance with the FLSA. Under the FLSA, each of the joint employers must ensure that the employee receives all employment-related rights under the FLSA (including payment of at least the federal minimum wage for all hours worked and overtime pay at not less than one and one-half the regular rate of pay for hours worked over 40 in a workweek, unless an exception or exemption applies).

Furthermore, joint employers must combine all of the hours worked by the employee in a workweek to determine if the employee worked more than 40 hours and is due overtime compensation.

For more information about federal wage laws administered by the Wage and Hour Division, call the agency’s toll-free helpline at 866-487-9243. Information also is available at http://www.dol.gov/whd.

The Scottsdale Independent is published monthly and mailed to 75,000 homes and businesses in Scottsdale.

You are encouraged to leave relevant comments but engaging in personal attacks, threats, online bullying or commercial spam will not be allowed. All comments should remain within the bounds of fair play and civility. You can disagree with others courteously, without being disagreeable. Feel free to express yourself but keep an open mind toward finding value in what others say. To report abuse or spam, click the arrow in the upper right corner of the comment box.

Facebook Comment