MCALLEN, Texas (ValleyCentral) — The employer of Oak Texas Bar & Grill failed to pay servers and bartenders federal minimum wage, according to the U.S. Department of Labor’s Wage and Hour Division.
The Department of Labor found that the employer violated federal minimum wage obligations by only allowing employees to work for tips, a release from the DOL stated. This fails to meet the federal minimum wage requirement of at least $2.13 per hour, authorities said.
Upon further investigation, it was discovered that the employer also failed to pay overtime to the wait staff and paid cooks straight time for all hours worked and the pay violations affected 36 employees of oak Texas Bar & Grill, the release stated.
In total, the employer owes $250,599 in back wages and liquidated damages, authorities said.
“By law, employers who claim a tip credit must make sure their employees earn at least the federal minimum wage, and that all hours – including hours worked at a different location – be counted when calculating overtime pay,” Wage and Hour District Director Cindy Cantu Flores said. “Low wage workers depend on every dollar they earn to make ends meet, and employers must pay them full wages or face the costly consequences of violations.”