Department of Labor recovers $253K for 19 restaurant workers whose Albuquerque employer withheld tips, wages at two franchise locations

Employers name:            X.M. Investment LLC, Beemer Investments LLC, both operating as Crackin’ Crab

Investigation sites:        4959 Pan American Freeway NE, Suite C, Albuquerque, NM 87114

                                                  2100 Louisiana Blvd. NE, Suite 413, Albuquerque, NM 87114

Investigation findings: The U.S. Department of Labor’s Wage and Hour Division found the employers violated federal law by keeping part of the employee’s tips. By doing so, the employer invalidated their tip credit and failed to pay the required minimum wage. The employer also violated the overtime provisions by paying time and one-half the regular rate of pay after 80 hours in a pay period instead of time and one-half of the employees’ hourly wages for hours over 40 in a workweek.

Back wages recovered: $126,818 in owed wages, $126,818 in liquidated damages to 19 workers.

Penalties: An assessment of $616 in civil money penalties for withholding employee tips.                                       

Quote: “Restaurant workers depend on their tips and overtime pay to support themselves and their families,” said Wage and Hour District Director Evelyn Ortiz in Albuquerque, New Mexico. “Tips cannot be kept by the employer under any circumstances. The U.S. Department of Labor remains committed to protecting our nation’s workers.”

Background: Established in 2015, Crackin’ Crab operates casual dining seafood restaurants at four locations in New Mexico in Albuquerque and Sante Fe, and two locations in Amarillo, Texas.