A federal judge has ordered Sunnyvale-based Crazy Buffet to pay its workers $404,000 in damages following a U.S. Department of Labor investigation. The Chinese-food buffet restaurant had a policy of not paying wages to workers, although it allowed them to keep their tips.
Of course, that violates the federal Fair Labor Standards Act.
The restaurant issued paychecks to the employees, but then insisted they return everything but their tips to the company.
Additionally, Crazy Buffet refused to pay overtime to workers who worked more than 40 hours in a week.
Crazy Buffet could have saved a bundle if it had cooperated with the court in the first place. The DOL’s original filing only asked for $44,570 in unpaid minimum wages and $157,380 in overtime compensation. But when the restaurant and its owner Zhou Ni refused to pay, Federal Judge Ronald M. Whyte doubled the damages.
- How to Fire an Employee the Legal Way: 6 Termination Guidelines
- Worker classification: Salary is just one factor that determines exempt status
- State pay law now covers out-of-state employees working in California
- YUM! Brands faces yucky wage-and-hour lawsuit
- Bill would theoretically overturn new overtime rule