US Department of Labor requires Kentucky restaurants to pay $250K in penalties for violations affecting 38 young workers

News Release

US Department of Labor requires Kentucky restaurants to pay $250K in penalties for violations affecting 38 young workers

El Mazatlan also paid $100K in back wages, damages for minimum wage, overtime violations

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LOUISVILLE, KY - The U.S. Department of Labor has reached an agreement with a Glasgow-based chain of restaurants requiring the enterprise to pay $250,000 in penalties - and to take steps to ensure future compliance with federal child labor laws- after investigators learned that the enterprise employed a child under the legal working age and employed 37 other teens to work more hours than the law permits.

This settlement follows an investigation by the department's Wage and Hour Divisionthat determined El Mazatlan Inc. violated federal child labor regulations by employing 37 children, ages 14 and 15 years old, to work longer and later than the Fair Labor Standards Act allows. El Mazatlan also employed a 13-year-old child, which is under the legal age limit.

In addition to paying penalties, El Mazatlan agreed to future compliance and to create and update child labor training materials in their management training program. The employer will also conduct training with all supervisors and managers.

"Learning new skills in the workforce is an important part of growing up - but we must protect children and ensure their first jobs do not interfere with their education or well-being," explained Wage and Hour Division District Director Karen Garnett-Civils in Louisville, Kentucky. "The Fair Labor Standards Act allows for developmental experiences but restricts the hours and occupations of workers under age 16 and provides for penalties when employers do not follow the law."

In addition to the child labor violations, the division found El Mazatlan illegally deducted the costs of uniforms from the wages of servers, causing their wages to drop below the federal minimum wage. The employer also failed to pay overtime to three salaried employees who were not exempt from the FLSA's overtime requirements. After its investigation, the division recovered $50,233 in back wages and an equal amount in liquidated damages for 168 employees.

"We found El Mazatlan liable for significant penalties as well as back wages and damages totaling more than $350,000," Garnett-Civils explained. "The Wage and Hour Division is committed to protecting workers' rights and holding employers accountable when they fail to pay employees in compliance with the law."

The division offers many free and accessible resources that explain employers' obligations and how to avoid violations. The YouthRules! initiativepromotes positive and safe work experiences for teens by providing information about protections for young workers to youth, parents, employers and educators. Through this initiative, the U.S. Department of Labor and its partners promote developmental work experiences that help prepare young workers to enter the workforce. The Wage and Hour Division has also published Seven Child Labor Best Practices for Employersto help employers comply with the law.

Workers and employers can call the Wage and Hour Division confidentially with questions, regardless of where they are from. The division can speak with callers in more than 200 languages. For more information about the FLSA and other laws enforced by the agency, contact the division's toll-free helpline at 866-4US-WAGE (487-9243).

Workers and employers can help ensure hours worked and pay are accurate by downloading the department's Android or iPhone Timesheet Appfor free in English and Spanish.

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