A North Carolina-based restaurant has been found in violation of the Fair Labor Standards Act. The victims in this case were minimum wage workers.
The investigation was run by the U.S. Department of Labor’s Wage and Hour Division. It revealed that the North Harbor Club in Davidson, North Carolina violated the minimum wage and overtime provisions of the law. The agency found the restaurant deducted a portion of employees’ pay in order to purchase uniforms. The move caused hourly wages to fall below the federal hourly minimum of $7.25.
As a result, the restaurant was forced to pay nearly $17,000 in back wages and damages to 18 employees.
The 1938 law was put in place to protect workers. It was also intended to maintain a level playing field, so employers who do follow the rules aren’t taken advantage of by those who do not.
The U.S. Department of Labor encourages employers with compliance questions to reach out to their local Wage and Hour Division office.