Federal investigation finds SoCal restaurant denied overtime, ran illegal tip pools

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CALIFORNIA — The U.S. Department of Labor announced December 19 that it recovered $17,311 in back wages for nine workers at a Rowland Heights restaurant who were denied proper overtime and tips, violating federal wage laws.

The department’s Wage and Hour Division found that Naya Ding Inc., doing business as Ma’s Kitchen, ran an illegal tip pool, directing supervisors to distribute only a portion of servers’ earned tips.

The restaurant’s owners kept a portion of the tips and failed to pay some employees the full time-and-a-half rate for overtime, both violations of the Fair Labor Standards Act (FLSA).

The division also found Ma’s Kitchen, now listed on Google as permanently closed, failed to maintain accurate time and payroll records, including tips and cash payments, violating FLSA recordkeeping requirements.

Wage and Hour Division assistant district director Rafael Valles said burdening employees with business expenses takes hard-earned wages out of workers’ pockets.

“That’s why the U.S. Department of Labor is committed to ensuring employers pay workers their fully earned wages in compliance with federal law, and its Wage and Hour Division will use every enforcement tool necessary to resolve cases like this,” Valles said.

Compliance assistance available

The Department of Labor says employers and workers can contact the Wage and Hour Division for compliance assistance at 1-866-4-US-WAGE (487-9243).

Learn more about the Wage and Hour Division, including a fact sheet on FLSA overtime requirements.

Workers and employers can track hours and pay using the department’s free timesheet app for iOS and Android.

RELATED: Immigrant truck drivers file class-action lawsuit against California for discrimination

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