Local Mexican restaurant to pay $88K to settle allegations it failed to properly pay workers
A local, family-owned Mexican restaurant is set to pay $88,000 to resolve a complaint that alleged the business did not properly pay some of its employees.
Lupita’s Authentic Mexican Food was accused by the U.S. Labor Department in March of withholding tips given to workers, failing to pay the minimum wage at two of its locations and not paying overtime rates properly.
The Labor Department alleged some employees were compensated at a flat rate for all hours worked, which resulted in them being paid less than the minimum wage. Some employees who worked more than 40 hours in a workweek were not paid 1 1/2 times their regular rate, the agency alleged.
The business agreed to pay about $76,500 in back wages and liquidated damages, as well as an about $11,500 civil penalty. The allegations spanned March 2021 until November 2022.
Payouts to 22 workers range from $118 to $12,843. The agreement was approved last month by U.S. District Judge Matthew Brann.
“Restaurant employees are crucial members of the workforce, and it is imperative that they receive their full wages to support themselves and their families,” a Labor Department spokesperson wrote in a statement. “When employers fail to pay workers their total earnings, the U.S. Department of Labor will take action to recover the unlawfully withheld wages.”
Before agreeing to the settlement, Lupita’s offered a wholesale denial to the allegations.
Any tips paid by credit card were distributed to employees, while other tips were given directly to workers, attorney Faith Lucchesi wrote in her May response. She also wrote that workers were paid at least the minimum wage and denied that any were underpaid.
The allegations were “not supported in fact,” she wrote. A message was left with her Wednesday.