Metro Detroit restaurant ordered to pay more than $37K in back wages to employees after federal investigation

Posted at 1:16 PM, Dec 02, 2020
and last updated 2020-12-02 13:16:43-05

ORION TOWNSHIP, Mich. (WXYZ) — A restaurant in Orion Township was ordered to pay more than $37,000 in back wages to employees after an investigation by the U.S. Department of Labor's Wage and Hour Division.

Investigators found that Carrie Lee's Orion Restaurant violated the Fair Labor Standards Act by paying kitchen employees flat monthly salaries, partially on payroll and partially in cash, regardless of the number of hours they worked.

Officials say that by doing so, they failed to pay overtime when employees worked more than 40 hours in a workweek.

Additionally, the restaurant allegedly failed to maintain a record of the number of hours employees worked, or of payments made to employees in cash.

“Employers must accurately pay employees for all the hours that they work, pay overtime for hours over 40 in a workweek to eligible employees and maintain records as required by the law,” said Wage and Hour Division District Director Timolin Mitchell in Detroit. “Other employers should use the results of this investigation as an opportunity to review their own pay practices to ensure they comply with the law. We encourage all employers to contact the Wage and Hour Division to fully understand their responsibilities and avoid similar violations.”