WILKES-BARRE, PA — In a critical step to protect workers’ rights, the U.S. Department of Labor recently collected $1.3 million in back wages, withheld tips, and liquidated damages for 51 employees of La Tolteca Authentic Mexican Restaurant in Wilkes-Barre. This outcome is the result of a thorough investigation and subsequent litigation that uncovered significant violations of the Fair Labor Standards Act (FLSA) by the restaurant and its owner, Carlos De Leon.
The Wage and Hour Division’s investigation found that servers and bartenders were improperly required to give a portion of their tips based on sales rather than contributing to a legitimate tip pool. In addition, the restaurant did not keep records of its tip pool, further complicating compliance with federal law. In addition, three non-exempt cooks were denied overtime pay for hours worked beyond the standard 40-hour workweek, in clear violation of the FLSA.
The U.S. District Court for the Middle District of Pennsylvania granted summary judgment for these violations. The judgment requires La Tolteca Wilkes-Barre Inc. and De Leon to pay the affected workers $651,778 in back wages and tips, plus an equivalent amount in liquidated damages. Due to the willful nature of these violations, the court also imposed a civil penalty of $26,443.
Jessica Looman, director of wage and hour administration, emphasized, “Tips for good service belong to the people who earned them, not the employer.” She underscored that any misuse of tips by management violates workers’ rights, a problem that is widespread in the restaurant industry. The department remains committed to ensuring that all workers receive their rightful wages and that businesses that comply with the law are not unfairly disadvantaged.
This ruling is a stark reminder to employers in the food service industry that illegal practices related to wages and tips can have serious consequences. Labor attorney Seema Nanda said, “The U.S. Department of Labor will use every tool available, including litigation, to prevent employers from withholding wages from their employees.”
The case was investigated by the Wilkes-Barre District Office of the Wage and Hour Division and brought to trial by the Philadelphia Regional Attorney’s Office in an effort to enforce labor laws and protect workers’ rights across the country.
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