Taste of India 1 Denied 19 Oregon Workers Overtime, DOL Recovers $200K
Summary
The U.S. Department of Labor's Wage and Hour Division investigation found Taste of India 1 in McMinnville, Oregon violated the Fair Labor Standards Act by misclassifying 19 workers as exempt, failing to pay overtime premiums, and using an invalid tip pool arrangement. The division recovered $200,137 in back wages and $15,256 in civil money penalties assessed for willful violations. Employers in the food service industry should review their exempt status classifications and tip pool arrangements for compliance.
“As a result of the investigation, the division recovered $200,137 in back wages and $15,256 in civil money penalties assessed against the employer for the willful nature of the violations.”
Food service employers with tip-based compensation should review their tip pool structures and worker exemption classifications. The FLSA requires time-and-a-half pay for hours worked over 40, and tips may only be used to satisfy minimum wage obligations through a valid tip credit arrangement that meets specific regulatory requirements.
About this source
GovPing monitors US WHD News for new labor & employment regulatory changes. Every update since tracking began is archived, classified, and available as free RSS or email alerts — 1 changes logged to date.
What changed
The Wage and Hour Division investigation determined that Taste of India 1 violated the FLSA by failing to pay overtime premiums to 19 non-exempt employees and by using workers' tips to supplement base wages, creating an invalid tip pool. The employer was assessed civil money penalties in addition to the back wage recovery. Food service employers should audit their worker classification decisions, overtime payment practices, and tip pool structures to ensure compliance with federal wage law.
Employers with tip-based compensation structures should verify that tip pools comply with FLSA requirements and that any credit toward minimum wage from tips is properly calculated and documented.
Penalties
$200,137 in back wages and $15,256 in civil money penalties
Archived snapshot
Apr 23, 2026GovPing captured this document from the original source. If the source has since changed or been removed, this is the text as it existed at that time.
News Release
US Department of Labor recovers $200K in back wages after investigation finds Oregon restaurant denied 19 workers overtime, operated invalid tip pool
MCMINNVILLE, OR – An investigation by the U.S. Department of Labor’s Wage and Hour Division found a McMinnville restaurant incorrectly categorized 19 workers as exempt, not paying them the legally required overtime premium, and used workers’ tips to supplement base wages, all violations of federal wage law.
Division investigators determined that Taste of India 1 violated the Fair Labor Standards Act by paying 19 non-exempt employees straight-time rather than the overtime rate of time and one-half the regular rate of pay for all hours worked over 40 in a workweek. Taste of India 1 also illegally used workers’ tips to supplement base wages, establishing an invalid tip pool.
As a result of the investigation, the division recovered $200,137 in back wages and $15,256 in civil money penalties assessed against the employer for the willful nature of the violations.
Workers and employers can call the Wage and Hour 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.
Learn more about the Wage and Hour Division, including a search tool that workers can use if they think they may be owed back wages collected by the division. Download the agency’s free timesheet app for iOS and Android devices to track hours and pay.
Agency Wage and Hour Division Date April 22, 2026 Release Number 26-244-SAN Media Contact: OPA West Media Email opa-west-media@dol.gov Media Contact: Ryan Honick Phone Number 202-693-4247 Email honick.ryan.l@dol.gov Share This
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