NewsLocal NewsKzoo/BCKalamazoo

Actions

3 Kalamazoo-area restaurants ordered to pay back wages

Federal investigators report minimum wage and overtime violations
Restaurants give tips on how to help them out this holiday season
Posted at 11:33 AM, Dec 17, 2020
and last updated 2020-12-17 11:33:35-05

KALAMAZOO, Mich. — 3 restaurants in Kalamazoo and Portage will pay nearly a quarter million dollars to dozens of employees after an federal investigation.

A federal judge ordered Los Amigos Mexican Restaurants, located at 3317 Stadium Drive and 7375 S Westnedge, and Riviera Maya Bar and Grill, located at 5036 S Westnedge, to pay $225,000 to 82 employees after the businesses violated the minimum wage and overtime rules set by the Fair Labor Standards Act.

According to the investigation by the U.S. Department of Labor, the restaurants paid employees fixed salaries, regardless of the number of hours that they worked. That led to employees being paid a rate below the federal minimum wage, and employees did not earn overtime pay when working more than 40 hours per week.

The Labor Department also found the businesses did not record the compensation for tipped employees, and did not keep track of how many hours employees worked.

The three locations are operated by separate companies, but owned by the same group of people.

The back pay funds will be distributed by employees the Labor Department identified as impacted by the restaurants' practices. If you were an employee of these restaurants and believe you are owed back wages, contact the local division office at 616-456-2004.