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US Department of Labor investigation finds Boise restaurant owner denied 388 workers minimum wage, overtime payments [ http://www.dol.gov/newsroom/releases/whd/whd20260108-1 ] 01/08/2026 07:00 AM EST
BOISE, ID – The U.S. Department of Labor has entered into a settlement agreement with the owner of two Boise restaurants that failed to pay minimum wage and overtime to 388 workers, in violation of federal law. The department’s Wage and Hour Division recovered $366,261 in back wages for 388 workers after the division’s investigators found that Coa de Jima Inc., operating as Coa De Jima Restaurant, and LDC Investment Group Inc., operating as Barbacoa Grill, illegally included managers and supervisors in a mandatory tip pool. By including management, the tip pool was invalidated and the employer lost their tip credit, resulting in minimum wage and overtime violations of the Fair Labor Standards Act. The division also found that the employer deducted uniform costs from workers’ pay, reducing their pay below the required FLSA minimum wage requirements. In addition, the employer only paid employees overtime premiums after they exceeded 80 hours in a pay period, instead of the legally required time-and-one-half for hours worked over 40 in a workweek. “Wage violations, including employers diverting workers’ tips, are a major concern for restaurant industry workers,” said Wage and Hour Division District Director Katherine Walum in Portland, Oregon. “Federal law protects workers’ rights to be paid their earned wages in full. The Wage and Hour Division offers assistance to help restaurant employers comply with the law and avoid these kinds of violations.”The division also found that the employer incorrectly classified some managers as overtime exempt, despite those individuals not meeting the duty requirements for the exemption. In addition to paying $366,261 in back wages, the settlement agreement requires Barbacoa Grill, Coa De Jima Restaurant, and owner Nikolai Castoro to pay a $47,282 civil money penalty for willful violations, assessed by the division. The investigation determined that the violations were willful because the employer showed a reckless disregard for the requirements of the FLSA.The FLSA requires that most employees be paid overtime at time and one-half their regular rate of pay for hours worked over 40 in a workweek. Learn more about the Wage and Hour Division, including a search tool to use if you think you may be owed back wages collected by the division.Employers and workers can call the division with questions and requests for compliance assistance at its toll-free helpline, 866-4US-WAGE (487-9243). Employers are encouraged to use the agency’s industry-specific compliance assistance toolkits to learn about their responsibilities under the laws enforced by the division. The agency’s PAID program offers employers an opportunity to self-report and resolve potential minimum wage and overtime violations under the Fair Labor Standards Act, as well as certain potential violations under the Family and Medical Leave Act.Download the agency’s free timesheet app for iOS and Android devices to track hours and pay. body { font-size: 1em; font-family: Arial, Verdana, sans-serif; font-weight: normal; font-style: normal; color: #333333; }
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