The U.S. Department of Labor’s Wage and Hour Division found that 3Pointe Restaurant Group Holdings LLC – doing business as Freddy's Frozen Custard & Steakburgers – failed to pay non-exempt restaurant workers for all hours worked.
The employer provided workers with a 15-minute break for every six hours of work and required employees to clock out for the breaks but did not pay for the break time. Under the Fair Labor Standards Act, rest periods of short duration, running from five minutes to about 20 minutes, are common in industry and must be counted as hours worked.
The agency recovered $38,495 in owed overtime and $38,495 in liquidated damages to 213 workers.
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“Food service workers are some of the nation’s lowest paid workers. They depend upon every dollar earned to make ends meet and the law protects their rights to be paid for all the hours worked,” said Hanz Grünauer, Wage and Hour District Director Hanz Grünauer in Little Rock, Arkansas. “As businesses struggle to find the people they need to be successful, those who fail in their legal obligations to their workers may find it more difficult to retain and recruit workers in the future.”