Boston restaurant owner to pay employees $675K in back wages

BOSTON (FOX 25 / MyFoxBoston.com) – The owner of three Boston restaurants reached a settlement agreement with the U.S. Department of Labor on Tuesday, and as a result, will have to pay 70 workers a total of $675,000 - $337,500 in back wages plus an equal amount in liquidated damages.

An investigation by the department's Wage and Hour Division found Marc Kadish, owner of Sunset Grill, Sunset Cantina, and Big City Restaurant, in violation of the Fair Labor Standards Act.

Investigators found that some employees were paid "straight time" for all hours worked instead of the required overtime rate of time and one-half for hours beyond 40 in a workweek. The employer also failed to combine hours for employees working at two locations in the same workweek, and therefore failed to pay the correct overtime premium when their combined hours exceeded 40.

Additionally, the employer failed to record cash payments made to employees who were paid part of their wages by check and part in cash. Finally, accurate daily and weekly records of hours worked were not maintained.

The settlement covers Sunset Management Corp. doing business as Sunset Grill & Tap, Sunset Cantina Management Inc. doing business as Sunset Cantina, Big City Management Corp. doing business as Big City Restaurant and Kadish.

The investigation was conducted as part of an ongoing enforcement initiative focused on the restaurant industry that is being conducted by the Wage and Hour Division's Boston office. Investigators have identified widespread noncompliance with the FLSA's minimum wage, overtime and record-keeping requirements.

Cox Media Group