Owner of Lacey Mexican restaurants apologizes for $100k in overtime and labor violations

The owner of a Mexican restaurant chain in Lacey has paid more than $105,000 in back wages and damages for violating overtime and child labor laws, federal investigators say.

The U.S. Department of Labor’s Wage and Hour Division determined Jose Sanchez, owner of Mayan Mexican Restaurants, failed to provide overtime pay to 20 workers and allowed a minor to work more hours than legally permitted, according to a Tuesday news release.

Thomas Silva, Wage and Hour Division Director in Seattle, said in the release that Sanchez deliberately violated federal employee protections.

“Restaurant employees work hard to make ends meet for themselves and their families,” Silva said. “This restaurant willfully violated federal overtime and child labor regulations by underpaying employees and having a minor work beyond the allowable hours.”

When reached for comment, Sanchez described the violations as unintentional mistakes that have been resolved. He said he has never had similar issues in the four decades he’s been in business.

“My apologies to the employees and my apologies to the customers,” Sanchez said. “There was a mistake and it was taken care of.”

Following the investigation, the department recovered $52,923 in unpaid overtime wages and an equal amount in damages for 20 employees, per the news release. They also recovered $6,440 in civil money penalties.

“We urge employers in this industry to review their employment practices and avoid costly consequences for violating the law,” Silva said.

Jose Carnevali, a spokesperson for the U.S. Department of Labor, told The Olympian the investigation began on Feb. 10, 2020, and concluded Feb. 5 this year.

The case was resolved administratively and the back wages are being distributed by Sanchez, Carnevali said. He declined to share what specifically prompted this investigation.

“Investigations generally begin after a complaint by an employee, a referral by a third party or a competitor, or in the context of a specific enforcement initiative by the department’s Wage and Hour Division centered on industries known for a high degree of FLSA violations,” Carnevali said.

Mayan Mexican Restaurants has three locations in Lacey, including one on Pacific Avenue Southeast, one on Marvin Road Northeast and one on Yelm Highway Southeast.

Each location operates under different corporate names, such as Macarios Inc., Los Primos Inc. and Dos Oros Inc., according to the release. However, Sanchez owns all three.

Investigators found Sanchez had employees that worked at multiple locations and he did not combine all hours worked. As a result, the release says he paid employees regular rates for hours worked at each location.

Sanchez corroborated this explanation but reiterated that he did not intentionally withhold overtime wages.

“For example, you work 35 hours at one location and then six hours at a different location,” Sanchez said. “We were not adding it. We were paying at each location, the check.”

The minor who worked more hours than permitted, reportedly did so on school days in violation of child labor regulations in the Fair Labor Standards Act, the release says. Carnevali said this violation occurred in 2021.

Sanchez said the minor wanted to work more hours and he had permission from his parents and school. He said the minor worked more hours in the summer but his schedule was not changed when he returned to school.

“The kid wanted more hours,” Sanchez said. “He was 17 at the time. He was working two or three more hours than he was supposed to work per week.”

Sanchez said he can explain the situation and his business practices to any community member who wishes to know more. He can be reached at 360-491-8244.

The FLSA requires employers to at least pay employees the federal minimum wage for all hours worked and at least 1.5 times that rate for any hours that exceed 40 hours in a regular work week.

The federal minimum wage has remained at $7.25 per hour since 2009. The minimum wage in Washington state was $15.74 per hour in 2023 and will increase to $16.28 per hour in 2024, according to the state Department of Labor and Industries.

Employers and workers can confidentially call the U.S. Department of Labor’s Wage and Hour Division toll-free helpline at 866-487-9243 with any questions or concerns.