Joe Vicari Restaurant Group Pays $88000 For Minimum Wage Child Labor Violations #DetroitFood

Andiamo in DTW’s McNamara Terminal. | Courtesy of Andiamo

The U.S. Department of Labor found that the restaurant group denied full wages to workers at 13 of its restaurants

The Joe Vicari Restaurant Group — operator of 20 locations in metro Detroit — has been ordered to pay $88,020 in back wages following a U.S. Department of Labor investigation found that 127 employees were denied their full paychecks. The federal government also found that the group violated standards related child labor hours, according to a news release issued Thursday.

The labor department found that the Warren-based group violated the Fair Labor Standard’s Act when 127 employees from 13 locations were denied their full wages. In addition to paying cash wages less than minimum wage to non-tipped employees, overtime violations, and failing to keep accurate pay records to employees paid in cash, the government learned that the company allowed a 15-year-old to work late and more than eight hours in a day, a violation of child labor hours standards. The restaurant group was ordered to pay $791 in penalties for the child labor violations, the news release added.

“A restaurant group in business for more than a few decades must be well aware of the laws protecting the wages of tipped and hourly employees,” said Wage and Hour Division District Director Timolin Mitchell in Detroit in the news announcement. “Violations like these are all too common in the food service industry. Employers are legally obligated to comply with federal law and make certain their managers are also well-versed in federal laws governing their employees.”

The labor department says the investigation period covered June 1, 2020 to May 31, 2022 for the Andiamo location in Bloomfield, while other locations were investigated between January 1, 2021 to May 31, 2022.

The company said that the payroll errors took place during the pandemic. “As we worked to keep our employees employed and safe during COVID-19, our payroll company made some errors, which were recently brought to our attention, for which we take full responsibility. We were able to correct these errors and consider this a teachable moment. We thank our employees for their understanding and continued support,” reads the statement.

The Joe Vicari Restaurant Group was at the center of controversy during the COVID-19 crisis when company owner Joe Vicari circulated a letter urging fellow business owners to defy the extension of indoor dining closures in Michigan. The medical community at the time said the call to action was “reckless.”

A U.S. Department of Labor investigation uncovered that the Joe Vicari Restaurant Group failed to pay workers at 13 of its locations their full wages and violated child labor hours. The group, which operates restaurants in metro Detroit,

Fair Labor Standards Act’s (FLSA) minimum wage and overtime provisions.

Workers at 13 locations, the labor department found, were denied their full wages. The restaurant operators were also found to allow a “minor-aged employee to work longer and later than legally permitted.” For the child labor violations, the labor department assessed the group $791 in penalties.

— operator of a chain of 20 local restaurants —

paid $88,020 in back wages and damages to 127 employees after a U.S. Department of Labor investigation found the employer denied workers at 13 locations their full wages and allowed a minor-aged employee to work longer and later than legally permitted.

Investigators with the department’s Wage and Hour Division determined the Joe Vicari Restaurant Group violated the Fair Labor Standards Act’s minimum wage and overtime provisions when they paid:

• Direct cash wages to non-tipped employees that were less than the required minimum wage.
• An overtime rate to tipped employees based upon their cash wage rather than minimum wage, which led to overtime violations.
• Straight-time rates in cash for kitchen employees who worked overtime hours.

The division also learned the employer did the following:

• Failed to keep accurate pay records for employees paid in cash.
• Allowed one 15-year-old to work past 9 p.m. and more than 8 hours in a day in violation of child labor hours standards.
• Deducted the cost of required uniforms from tipped employees, resulting in minimum wage violations.

The department assessed $791 in penalties for the child labor violations.

“A restaurant group in business for more than a few decades must be well aware of the laws protecting the wages of tipped and hourly employees,” explained Wage and Hour Division District Director Timolin Mitchell in Detroit. “Violations like these are all too common in the food service industry. Employers are legally obligated to comply with federal law and make certain their managers are also well-versed in federal laws governing their employees.”

from Eater Detroit - All