Chi Buffet sued by Labor Department

AUSTIN – The U.S. Department of Labor has filed a lawsuit against Chi Buffet amid allegations that the Austin restaurant was in violation of federal wage and hours laws.

The business and its owner, Susan Chan, are accused of not properly compensating some 75 former and current employees.

“The Labor Department is committed to protecting the rights of low-wage and vulnerable workers, including those in the restaurant industry,” said Cynthia Watson, regional administrator for the Wage and Hour Division in the Southwest.

“Vulnerable workers are those who, for a variety of reasons, are reluctant to come forward and complain when they are subjected to violations, especially in tough economic times. Filing this lawsuit underscores the department’s commitment to using all enforcement tools available, including litigation, to recover workers’ wages and ensure a level playing field for employers who abide by the rules.”

The complaint, which covers allegations that date back as much as three years ago, was filed in the U.S. District after the Labor Department determined that unlawful deductions had been taken from employees’ tips, resulting in their pay falling below the federal minimum wage; kitchen employees had been paid “straight time” rather than time and one-half for hours worked over 40 in a week; and required record keeping had not been maintained.