The local, family-owned chain of restaurants known as Mexico Lindo Grill & Cantina is facing a lawsuit from the U.S. Department of Labor for allegedly violating the Fair Labor Standards Act of 1938. The lawsuit alleges that some of the restaurant’s employees were paid only from the tips collected from customers.
The lawsuit was filed in the U.S. District Court for the Southern District of Iowa against Rocio Correa-Mata, 33, of Iowa City. Correa-Mata is reported to have been the sole owner and primary manager of the restaurant chain since June 2015.
The Department of Labor alleges that Correa-Mata has managed and supervised the restaurant chain’s daily operations, including hiring and firing employees, creating employee work schedules, and setting pay rates. Mexico Lindo has three locations less than 15 miles away from each other in North Liberty, West Branch, and Iowa City…