A company learned the hard way that paying an employee a salary does not remove the obligation to pay for overtime if the employee is entitled to it. A restaurant in Akron, Ohio found this out the hard way and it ended up costing them $118,354 in back wages and damages, paid out to 21 employees.
Improper classification
According to the Department of Labor press release:
“Investigators found Azteca Restaurante Mexicano paid kitchen staff fixed salaries, ranging from $550 to $675 per week, without regard to how many hours they worked. This practice resulted in failure to pay required overtime when these employees worked more than 40 hours in a week.”
