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Taste of India in Oregon violated wage laws, labor dept. finds

Federal probe recovers over $200K after overtime violations and improper tip practices affecting 19 workers.

Taste of India is / McMinnville website

An Indian restaurant, Taste of India 1, in McMinnville, Oregon, was found to have denied overtime pay and operated an invalid tip pool, following an investigation by the U.S. Department of Labor.

The department’s Wage and Hour Division determined that Taste of India 1 misclassified 19 employees as exempt from overtime requirements. As a result, the workers were paid straight-time wages instead of the legally required time-and-a-half rate for hours worked beyond 40 in a workweek.

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Investigators said the restaurant’s practices violated the Fair Labor Standards Act, which mandates overtime pay for non-exempt employees. In addition to the misclassification, the business improperly used employee tips to supplement base wages, creating what officials described as an invalid tip pool.

The investigation led to the recovery of $200,137 in back wages for the affected workers. The department also assessed $15,256 in civil money penalties against the employer, citing the willful nature of the violations.

Federal officials said the case highlights ongoing enforcement efforts to ensure compliance with wage laws, particularly in industries where tipping and overtime practices are common.

The Wage and Hour Division encourages workers and employers to seek guidance on compliance. Assistance is available through its toll-free helpline. The agency also provides industry-specific resources to help employers understand their obligations under federal labor laws.

Additionally, officials noted that the department’s PAID program allows employers to self-report and resolve potential minimum wage and overtime violations under the Fair Labor Standards Act, as well as certain issues under the Family and Medical Leave Act.

Discover more at New India Abroad.

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