The U.S. Department of Labor has reached a settlement agreement with the operator of a Little Caesars restaurant in Redwood City to pay $409,457 in back wages to 32 workers after an investigation found the employer failed to pay them the required minimum wage and overtime, in violation of federal wage law.
The agreement follows an investigation by the department’s Wage and Hour Division that found franchise operator MG Fast Food Inc. violated minimum wage and overtime provisions of the Fair Labor Standards Act between May 2022 and May 2025. The division found that the employer failed to pay employees time and one-half overtime rates for all hours worked over 40 in a workweek but instead paid them straight time for those hours. In addition, the employer neglected to pay some employees for all hours worked, resulting in minimum wage violations.
The investigation also found FLSA recordkeeping violations, including discrepancies between timesheet totals and payroll records that affected overtime computations.
“All workers must be paid for every hour they work, including overtime premiums when they work more than 40 hours in a workweek,” said Wage and Hour Division Acting District Director Michael Eastwood in San Jose, California. “The Wage and Hour Division will continue to enforce federal law and help ensure workers receive the wages they earn.”
Employers and workers can call the division with questions and requests for compliance assistance at its toll-free helpline, 866-4US-WAGE (487-9243). Employers are encouraged to use the agency’s industry-specific compliance assistance toolkits to learn about their responsibilities under the laws enforced by the division. The agency’s PAID program offers employers an opportunity to self-report and resolve potential minimum wage and overtime violations under the FLSA, as well as certain potential violations under the Family and Medical Leave Act.