US Department of Labor Recovers $409K Back Wages from Little Caesars Operator

DOL News Releases

Filed February 25th, 2026

Detected February 26th, 2026

Summary

The U.S. Department of Labor's Wage and Hour Division has recovered $409,457 in back wages from MG Fast Food Inc., an operator of a Little Caesars restaurant. The settlement resolves violations of the Fair Labor Standards Act concerning minimum wage and overtime pay for 32 workers.

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What changed

The U.S. Department of Labor has secured a settlement with MG Fast Food Inc., a Little Caesars franchise operator, requiring the payment of $409,457 in back wages to 32 workers. The investigation revealed violations of the Fair Labor Standards Act (FLSA), including failure to pay legally mandated minimum wage and overtime rates for hours worked over 40 in a workweek. The employer also neglected to pay some employees for all hours worked and committed recordkeeping violations related to timesheets and payroll.

This enforcement action underscores the importance of accurate wage and hour compliance for all employers. Companies must ensure they are paying at least the federal minimum wage and overtime premiums for all hours worked over 40 in a week. Failure to comply can result in significant financial penalties and back wage liabilities. Employers are encouraged to utilize the Wage and Hour Division's compliance assistance tools and resources to understand their obligations and avoid violations.

What to do next

Review internal payroll and timesheet practices to ensure compliance with FLSA minimum wage and overtime requirements.
Verify that all hours worked are accurately recorded and compensated, including overtime premiums.
Consult DOL's Wage and Hour Division resources for compliance assistance if any discrepancies are identified.

Penalties

$409,457 in back wages

Source document (simplified)

News Release

US Department of Labor recovers over $409K in back wages from Little Caesars franchise operator for 32 workers

Investigation found employer failed to pay legally required minimum wage, overtime REDWOOD CITY, CA – 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.

Learn more about the Wage and Hour Division, including a search tool to use if you think you 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 February 25, 2026 Release Number 26-198-SAN Media Contact: OPA West Media Email OPA-West-Media@dol.gov Share This
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