The U.S. Department of Labor this morning announced the recovery of nearly $77,000 in wages and damages from the Freddy's Frozen Custard & Steakburgers franchisee behind five local restaurants.
The Department of Labor's Wage and Hour Division indicated in a news release that the franchisee, Rogers, Arkansas-based 3Pointe Restaurant Group Holdings LLC, allegedly failed to pay overtime. The investigation covered three restaurants in Springfield, one apiece in Branson and Ozark, and four others in Arkansas.
The recovery figure comprises $38,495 in owed overtime and $38,495 in liquidated damages to 213 workers, according to the Department of Labor.
The release alleges 3Pointe Restaurant Group Holdings failed to pay nonexempt restaurant workers for all hours worked. Specifically, the employer provided workers with an unpaid 15-minute break for every six hours of work, according to the Labor Department allegations, a violation of the Fair Labor Standards Act.
“Food service workers are some of the nation’s lowest- paid workers. They depend upon every dollar earned to make ends meet, and the law protects their rights to be paid for all the hours worked,” said Hanz Grünauer, Wage and Hour district director in Little Rock, Arkansas, in the release. “As businesses struggle to find the people they need to be successful, those who fail in their legal obligations to their workers may find it more difficult to retain and recruit workers in the future.”
Officials with 3Pointe Restaurant Group could not be reached immediately for comment by deadline. A public relations firm working on behalf of Freddy’s corporate requested a copy of the news release before determining whether to release a statement.
The area restaurants investigated are located at:
• 615 W. El Camino Alto St. in Springfield;
• 2305 N Glenstone Ave. in Springfield;
• 3757 S. Glenstone Ave. in Springfield;
• 1185 Branson Hills Parkway in Branson; and
• 1915 W. Marler Lane in Ozark.
The Bureau of Labor Statistics reported in May the all-items inflation index surged 8.6% over the past year, the highest increase since 1981.