El Mazatlan Inc. restaurants ordered to pay $250K in penalties for labor violations

LOUISVILLE, Ky. – The U.S. Department of Labor says it has reached an agreement requiring the El Mazatlan Inc. chain of restaurants to pay $250,000 in penalties following an investigation by the department’s Wage and Hour Division.

According to a release by the U.S. Department of Labor on Oct. 10, investigators learned the enterprise “violated federal child labor regulations” by employing 37 teens from the ages of 14 to 15 years old “to work longer and later than the Fair Labor Standards Act allows.”

The release says El Mazatlan also employed a 13-year-old, which is under the legal age limit.

Officials say El Mazatlan is a Glasgow-based chain of restaurants.

In addition to the penalties, officials say the enterprise agreed to comply in the future and “to create and update child labor training materials in their management training program.”

The release says the employer will train all of its supervisors and managers.

“Learning new skills in the workforce is an important part of growing up – but we must protect children and ensure their first jobs do not interfere with their education or well-being,” said Wage and Hour Division district director Karen Garnett-Civils in Louisville. “The Fair Labor Standards Act allows for developmental experiences but restricts the hours and occupations of workers under age 16 and provides for penalties when employers do not follow the law.”

In addition, the release says the division learned El Mazatlan “illegally deducted the cost of uniforms from the wages of servers,” which caused the wages of these employees to fall below the federal minimum wage.

The release also states the employer did not pay overtime “to three salaried employees who were not exempt from the FLSA’s overtime requirements.”

Following the investigation, the division says it recovered $50,233 of back wages, along with the same amount in liquidated damages affecting 168 employees.

“We found El Mazatlan liable for significant penalties as well as back wages and damages totaling more than $350,000,” Garnett-Civils said. “The Wage and Hour Division is committed to protecting workers’ rights and holding employers accountable when they fail to pay employees in compliance with the law.”

For more information about the Fair Labor Standards Act and other laws enforced by the agency, contact the division’s toll-free helpline at 866-4US-WAGE (487-9243). To view the full release in English or Spanish, click here.