Gallo’s Mexican Restaurants and Taco King, Inc. have agreed to pay more than $835,000 in overtime and liquidated damages owed to 159 employees in Alaska,
state labor officials said Dec. 14.
The decision represents one of the largest recoveries of overtime wages secured by the Alaska Department of Labor and Workforce Development’s Wage and Hour Administration, according to Labor Commissioner Heidi Drygas.
A recent state investigation found that multiple locations of Gallo’s and Taco King in Alaska violated the overtime provision of the Alaska Wage and Hour Act, and failed to make accurate payroll records. Previous investigations found both businesses in violation of state wage and hour laws and resulted in collection of over $50,000 in unpaid wages and damages.
Drygas said wage violations are not uncommon in the restaurant industry, where workers may not know their rights, or are afraid to speak up.
Increased collaboration between the federal Department of Labor and state agency contributed to the success of the investigation.
State wage and hour laws require payment of at least the state minimum wage for all hours worked, and overtime pay for hours beyond eight in a day or 40 in a week for all covered, nonexempt employees. The law applies regardless of how workers are paid by time, piece, commission or otherwise. Paycheck deductions for broken dishes, cash register shortages, or unpaid patron meals are illegal. Tips belong to the employee, and may not be offset against the minimum wage.
Employers with questions regarding Alaska wage laws should visit http://labor.alaska.gov/lss/whhome.htm, or contact the Wage and Hour Administration
