Local Restaurant Forced To Pay $1 Million in Back Wages to Staff

The U.S. Department of Labor announced Friday that a local restaurant, with a second location in Philadelphia, has reached a settlement to pay employees almost $1 million in back wages.

According to Philly Voice, the owners of Osaka—located along the 1500 block of Sumneytown Pike in Towamencin—pocketed above-average percentages of customer tips on credit cards and failed to pay the proper overtime premium of time-and-a-half since September 2013. Back-of-house staff, including chefs, cooks, and dishwashers, were paid a flat rate of $80 to $150 a day, even though many worked 50 to 60 hours a week.

Philly.com said that the restaurant owners also failed to maintain required records. In addition to the $935,000 that will be given to the 201 employees, the restaurants will also pay a $65,000 penalty.

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