Business

Hawaiian Style Café Violates DOL Overtime Requirements

February 10, 2016, 12:43 PM HST
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Hawaiian Style Cafe Hilo. File photo by Nate Gaddis.

Hawaiian Style Cafe Hilo. File photo by Nate Gaddis.

Hawaiian Style Café in Hilo and Waimea is under fire for failing to pay restaurant workers working overtime the required pay set by the United States Department of Labor’s Wage and Hour Division.

An investigation conducted by the DOL found that the restaurants, which are jointly owned and operated, violated the Fair Labor Standards Act.

Workers who exceeded 40 hours in a week were paid in cash at the employee’s straight-time rate, neglecting to pay overtime hours at time-and-a-half their regular rates.

“Employers who deny low-wage workers their legally required overtime earnings diminish the ability of those workers to care for themselves and their families,” said Terence Trotter, direction of the division’s Honolulu District Office. “Employers that circumvent the wage provision of the Fair Labor Standards Act also unlawfully obtain an economic advantage when competing with other businesses that properly record and pay their workers.

Hawaiian Style Café Hilo will pay $21,798 in unpaid overtime wages plus an equal amount in liquidation damages, which totals $43,596 paid to 41 employees.

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Hawaiian Style Café Waimea will pay $5,300 in unpaid overtime wages plus an equal amount in damages, which totals $10,400 paid to four employees.

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“As the back wages and damage collected in this case demonstrate, we are serious about putting a stop to these violation,” said Trotter. “Other workers being paid in this manner should give us a call.”

Under the FLSA, non-exempt employees are required to earn time-and-one-half of their regular rates of pay for every hour they work beyond 40 per week. The law also requires that employers keep accurate records of employees’ wages, hours, and other conditions of employment.

Employers are also prohibited against retaliating against employees who exercise their rights under the law.

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