LIHU‘E — Federal investigators have recovered nearly $63,000 in back wages and liquidated damages for 42 employees of Paco’s Tacos Cantina, a restaurant with four locations on Kaua‘i and one on O‘ahu.
Paco’s Tacos joint-owners Elizabeth Diaz and Antonio “Tony” Aguilar Aguirre owed workers $12,682 in overtime wages, and allowed a manager and others to take as much as $18,771 from tips earned by workers, thereby violating the federal Fair Labor Standards Act, the Department of Labor said Thursday.
Aguilar Aguirre, speaking from O‘ahu, expressed surprise when told the Department’s Wage and Hour Division had publicized its findings.
Paco’s Tacos’ bi-weekly pay schedule had inadvertently left workers without overtime pay, according to Aguilar Aguirre.
“We used to pay every two weeks, so we just changed to weekly so we can be OK with overtime,” Aguilar Aguirre said, claiming he was unaware of any wrongdoing until investigators told him otherwise.
Paco’s Tacos’ Kaua‘i locations include Kapa‘a, Kilauea, Kalaheo and Po‘ipu.
“We do our best. When we started, this was not a big company, this was a small company,” Aguilar Aguirre said. “…When you have so much business, they start checking the little things, right? It’s OK. Because now we’re a better company.”
Aguilar Aguirre said his business resolved the situation, which included $10,000 in civil money penalties, about two months ago.
“Federal laws require overtime pay for hours worked in excess of 40 in a workweek and that tipped employees retain the tips they’ve earned,” Honolulu-based Wage and Hour Division District Director Terence Trotter said in the Department of Labor announcement. “Employers should take advantage of the many educational tools we offer to avoid costly violations such as those found in this case.”
The Department’s Wage and Hour Division recovered $34.7 million in back wages for food industry workers nationwide in Fiscal Year 2021.
In total, the Division recovered more than $230 million in back wages that same fiscal year, according to the Division’s website.
Wage-theft bill in State Legislature
State Senate Bill No. 2298 crossed into the State House of Representatives earlier this month.
The measure would increase the penalty for employers who fail to pay the wages of their employees in accordance with the law to a class C felony.
It also adds a minimum penalty of $500 per violation.
An amended version of the wage-theft bill passed its first reading in the House on March 8. It’s since been referred to the House Labor &Tourism and Finance committees.
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Scott Yunker, reporter, can be reached at 245-0437 or syunker@thegardenisland.com.
