Articles

Employment Law Update: Minimum Wage, Overtime, and the Dangers of Not Staying Up to Date

Date: November 16, 2023
Last week, the Department of Labor announced it had recovered $11.4 million in back wages and liquidated damages for more than 1,000 employees of a popular Mexican Restaurant chain, Plaza Azteca. Following an investigation that began in 2019, the Department of Labor filed a lawsuit against the owner of several Plaza Azteca locations alleging violations of the Fair Labor Standards Act (“FLSA”). The investigation, complaint, and subsequent consent judgment found that Plaza Azteca disregarded federal law and its obligations to pay its workers a minimum wage, overtime, and keep accurate payroll records. In addition to back wages and civil penalties, the judgment also requires Plaza Azteca to hire an independent consultant to ensure the employers’ payroll and recordkeeping practices comply with the FLSA.
 
While this is an extreme example, it serves as a reminder to employers with non-exempt workers that accurate record keeping is imperative,  ensuring that employees are paid the appropriate amount for work performed. In addition to accurate record keeping, staying attuned to changes in the law relating to minimum wage is also important to maintaining compliance.
 
For example, in Virginia, employers must comply with state minimum wage laws. “From January 1, 2023, until January 1, 2025, every employer shall pay to each of its employees’ wages at a rate not less than the greater of (i) $12.00 per hour or (ii) the federal minimum wage.” Va. Code Sec. 40.1-28.10(D). While there is no change upcoming for January 1, 2024, employers are reminded of their obligations under Virginia law and the impending rise in minimum wage come January 1, 2025. For employers in Maryland, similar changes have been made and all employers must pay their employees $15.00 per hour beginning January 1, 2024.
 
Overall, employers should ensure they are attuned to state and federal minimum wage and overtime requirements and couple that knowledge with accurate record-keeping. Please reach out to your Whiteford Labor & Employment team for more information or questions regarding minimum wage, overtime, or other FLSA requirements.
The information contained here is not intended to provide legal advice or opinion and should not be acted upon without consulting an attorney. Counsel should not be selected based on advertising materials, and we recommend that you conduct further investigation when seeking legal representation.