CENTRAL CITY, Ky. (KT) - A Central City restaurant has been ordered to pay $78,562 in back wages and liquidated damages to eight employees, the U.S. Department of Labor said Tuesday.
The announcement said New Lucky Garden Inc. was found to have violated minimum wage, overtime and record-keeping requirements of the Fair Labor Standards Act.
The Department of Labor said its investigation found that the restaurant “paid most employees flat monthly salaries, in cash, without regard to the number of hours they actually worked.”
“This practice resulted in minimum wage violations when those salaries failed to cover all the workers’ hours at the federal minimum wage of $7.25 per hour, and overtime violations when they worked more than 40 hours in a workweek yet were not paid overtime.”
The employer also paid one tipped employee a direct cash wage of only $2 per hour, resulting in an additional minimum wage violation, the news release said.
It added that the investigation “determined that New Lucky Garden also violated record-keeping requirements when they failed to maintain records of the number of hours employees worked each work week.”