The U.S. Department of Labor has sued an Iowa-based chain of Mexican restaurants, alleging the owner broke federal wage laws by failing to pay minimum wage and overtime.
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The lawsuit, filed in the U.S. District Court for the Southern District of Iowa, targets Mexico Lindo Grill & Cantina and its owner, Rocio Correa-Mata, 33, of Iowa City. The Labor Department claims Correa-Mata violated the Fair Labor Standards Act of 1938.
Investigators say the restaurant chain paid some servers only in customer tips, without any hourly wage. That pay structure violates federal law, which requires a minimum of $7.25 per hour.
Servers Allegedly Receive Only Tips
Mexico Lindo operates locations in Iowa City, North Liberty, and West Branch, Iowa. The lawsuit says servers at each site received no base wage and relied solely on tips.
Officials also say the company failed to pay overtime to employees who worked more than 40 hours a week. Federal law requires employers to pay time-and-a-half for those extra hours…