U.S. Labor Department Recovers More Than $500,000 in Back Wages for San Diego Workers

Highlights

• The U.S. Department of Labor recovered $500,256 in back wages for six employees at a San Diego deli.
• Investigators found workers were paid a flat $100 per day despite averaging 55 hours per week.
• The investigation identified violations of federal minimum wage and overtime requirements under the Fair Labor Standards Act.
• Each affected worker received approximately $83,000 in back wages.

The U.S. Department of Labor has recovered more than $500,000 in unpaid wages following an investigation into wage practices at a San Diego deli that failed to comply with federal minimum wage and overtime requirements.

The department's Wage and Hour Division investigated Chau Deli, operating as A Chau Sandwich, and determined that six employees were compensated with a flat daily rate regardless of the number of hours worked.

Investigators found that employees frequently worked 11-hour days, averaging approximately 55 hours each week. The compensation structure resulted in regular pay rates below the applicable local minimum wage, and employees were not paid overtime premiums for hours worked beyond 40 in a workweek.

As part of the enforcement action, the Wage and Hour Division recovered $500,256 in back wages, with each employee receiving approximately $83,000.

The agency also encouraged employers to use its compliance resources and voluntary programs to better understand federal wage and hour requirements and prevent future violations.

Why It Matters

For construction owners, contractors and subcontractors, wage and hour compliance remains a critical aspect of workforce management. Employers should ensure payroll practices comply with the Fair Labor Standards Act and applicable state or local wage laws, particularly regarding overtime calculations and minimum wage requirements, to avoid costly enforcement actions.

Source: U.S. Deaprtment Of Labor.