BROOKHAVEN, MS – A Brookhaven restaurant failed to maintain records proving tipped employees earned at least the required $7.25 federal minimum wage and committed other violations of the Fair Labor Standards Act, the U.S. Department of Labor Wage and Hour Division has found.
A review of Lin Chen LLC’s pay and recordkeeping practices revealed that tipped employees did not keep all tips and that the employer failed to keep the required records to verify that tips employees received, when combined with their direct wages from the employer, met federal minimum wage requirements. Lin Chen’s recordkeeping failure disallowed the employer’s ability to use a “tip credit,” – a credit an employer can take for workers’ tips toward its minimum wage obligations. The restaurant operates as Little Tokyo Japanese Steak House.
As a result of the investigation, the division recovered $57,323 in back wages owed for the affected workers.
“These hard-working, essential workers deserve to be paid all of the wages they have legally earned,” said Wage and Hour Division District Director Audrey Hall, in Jackson, Mississippi. “We encourage employers to contact their nearest Wage and Hour Division office to better understand their legal responsibilities and avoid costly errors. Workers with questions can call us confidentially to ask questions or file complaints. We can communicate with callers in more than 200 languages, and enforce the law regardless of a worker’s immigration status.”
For more information about the FLSA and other laws enforced by the division, contact the agency’s toll-free helpline at 866-4US-WAGE (487-9243). Learn more about the Wage and Hour Division, including a search tool to use if you think you may be owed back wages collected by the division.
