January 28, 2023

Volume XIII, Number 28

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US Department of Labor Recovers $250K in Wages, Damages for Servers, Bartenders Denied Full Wages, Overtime by Employer’s Illegal Pay Practices

Oak Texas Bar LLC, Oak Texas Bar & Grill LLC paid servers, bartenders tips only

Employer name:                    Oak Texas Bar & Grill LLC

                                                        Oak Texas Bar LLC

Investigation site:                 7001 N. 10th St., Suite C, McAllen, Texas 78504

                                                         113 S 17th St., McAllen, TX 78501

Investigation findings: The U.S. Department of Labor’s Wage and Hour Division found the employer violated federal minimum wage obligations by not paying servers and bartenders a cash wage of at least $2.13 per hour. The restaurant allowed employees to work for tips only, which failed to meet the federal minimum wage requirements. Investigators also found that the employer failed to pay overtime pay to wait staff. In addition, the investigation determined the employer paid cooks straight time for all hours worked.

Back wages recovered:         $250,599 in owed back wages and liquidated damages

Workers affected:                     36

Quote: “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,” explained Wage and Hour District Director Cindy Cantu Flores in McAllen, Texas. “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.”

© Copyright 2023 U.S. Department of LaborNational Law Review, Volume XII, Number 342
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About this Author

The Department of Labor (DOL) fosters and promotes the welfare of the job seekers, wage earners, and retirees of the United States by improving their working conditions, advancing their opportunities for profitable employment, protecting their retirement and health care benefits, helping employers find workers, strengthening free collective bargaining, and tracking changes in employment, prices, and other national economic measurements. In carrying out this mission, the Department administers a variety of Federal labor laws including those that guarantee workers’ rights to safe and...

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