Feds: Fifth Avenue South restaurant ordered to pay $184,000 in back wages
The U.S. Department of Labor accused a Naples restaurant of violating several labor and wage laws. The investigation that followed resulted in serious penalties for the local establishment.
The restaurant has paid the U.S. Department of Labor more than $53,000 in civil money penalties.
Upscale Fifth Avenue restaurant Sails had to pay over $184,000 in back wages and liquidated damages to 56 employees after the department's investigation.
Here's everything we know, plus a response from Sails management.
What was the $184,000 for?
The U.S. Department of Labor recovered $184,139 in back wages and liquidated damages for the 56 U.S. or seasonal guest employees.
A back wage is money that is owed to an employee for work that they've completed but weren't paid for at the time.
Liquidated damages are a remedy for victims of certain unlawful employment discrimination or wage violations..
What was Sails Restaurant accused of?
The department found multiple violations of federal nonimmigrant work program and federal minimum wage and overtime violations. Sails Restaurant also violated provisions of the H-2B worker visa program, federal investigators said.
The H-2B worker visa program allows U.S. employers to bring foreign workers to the United States to fill temporary nonagricultural jobs.
Here's some things the department found out that the employer did:
Imposed special experience requirements for H-2B workers to qualify for jobs
Illegally kept the tips of some H-2B and U.S. workers
Failed to pay a worker's last paycheck
Paid an incorrect overtime rate to tipped employees
Failed to list all qualifications in the job order
Didn't give proper notices related to job termination, denying H-2B workers U.S. work status rights
Improperly classified jobs or excluded job tasks on work orders
Didn't provide job orders or notify workers of their rights
Didn't reimburse visa expenses for H-2B workers, despite knowing the requirement
Sails says DOL release was "misleading and unjust"
Sails Restaurant Director of Operations Corinne Ryan wants to set the record straight. Here's what Ryan told Naples Daily News about the investigation.
"The DOL press release is very misleading and unjust," Ryan said.
Ryan said she has personally handled all matters regarding tips and payroll since Sails Restaurant opened six years ago.
Ryan said they appointed a "very reputable payroll company and selected its top-level HR service to ensure that we were compliant with all laws."
"I can say that we learned through this investigation that was closed two years ago that our business lacked some procedures and record keeping, which we have since rectified," she said.
Ryan said she and her husband regularly waited tables as well as hired staff.
"Unfortunately, the DOL did not want to see evidence that we were serving tables and ruled against us with double damages," Ryan said.
Ryan said managers still serve tables at Sails from time to time, but any additional gratuity they get is distributed amongst the rest of the staff.
"We decided not to seek further review of the investigator’s findings due to the distraction and costs associated with the protracted process," Ryan told Naples Daily News. "Taking this to court would again double the costs to our small family business."
What happens next?
The Naples establishment was fined $53,536 in civil money penalties.
On Feb. 22 from 9 a.m. to 4 p.m., the Wage and Hour Division of the department will host a free webinar to educate employers on the Fair Labor Standards Act and H-2B provisions.
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You must register for the event to attend.
If you'd like to contact the Wage and Hour division, call (866) 487-9243.
This article originally appeared on Naples Daily News: Naples restaurant Sails investigated, ordered to pay back wages
