HOUSTON - A Denny's franchisee in Houston is accused of failing to pay its employees minimum wage, overtime, and more.
The U.S. Department of Labor investigated Rams Food Inc., which operates three Denny’s locations. The investigation led to the recovery of $73,735 in back wages to 160 tipped employees.
According to the findings, Rams Food also deducted the cost of uniforms from hourly and salaried employees illegally. That led to minimum wage violations.
The employer also failed to combine all the hours individual employees worked in multiple positions and at multiple locations for the business in the same workweek. That meant that Rams Food could get away without paying workers overtime despite them working more than 40 hours in a workweek.
The employer also violated FLSA, by failing to maintain records accurately for tipped employees.
"Employers must pay workers all the wages they have earned. Servers count on every dollar to care for themselves and their families," said Wage and Hour District Director Robin Mallett in Houston. "The outcome in this case should remind other employers to review their pay practices to avoid violations like those found in this case."
The department offers numerous resources to ensure employers have the tools they need to understand their responsibilities and to comply with federal law, such as online videos and confidential calls to local Wage and Hour Division offices.
For more information about the FLSA and other laws enforced by the division, the public can contact the agency’s toll-free helpline at 866-4US-WAGE.