A U.S. Department of Labor Wage and Hour Division investigation has found that the Hibachi Buffet restaurant in Minneapolis owes 18 employees a total of $117,000 in unpaid wages.
The company’s practice of paying employees a fixed salary that was less than the minimum wage is to blame for the large bill. Not only weren’t employees paid the minimum wage, the company is on the hook for overtime the employees worked as well.
Wage and Hour Division investigators also found the company failed to keep an accurate record of the employee’s hours worked.
Hibachi Buffet agreed to settle with the Labor Department. As part of the settlement, the company will start using a time clock and will have a public accounting firm perform an audit to ensure the company stays in compliance.