Miyo's Agrees to Pay Back Wages for Labor Violations

The owners of seven Miyo's restaurants, including the one on Bower Parkway in Columbia, have agreed to pay 97 employees more than $44,000 in back wages to settle labor violations.

The fine was announced Thursday morning by the U.S. Department of Labor.

The restaurants, owned by Xiaolan (Michelle) Wang and Rui (Ray) Cao, violated overtime, minimum wage and record-keeping provisions of the Fair Labor Standards Act, according to the release.

These violations were disclosed at the following Columbia locations: Miyo’s South Main Street; M Café Sumter Street; M Vista Lady Drive; Miyo’s Forest Drive; Miyo’s Fashion Drive; and Miyo’s on East Bowery Parkway and Sunset Boulevard in Lexington. 

“At all seven Miyo’s restaurant locations we found many low-wage employees working long hours, without any overtime compensation, and at times earning wages far below the federal minimum wage. Unfortunately, these types of labor violations are all too common in the restaurant industry,” said Michelle Garvey, director of the division’s Columbia office, in a press release.

“The Wage and Hour Division is resolute in its commitment to increasing compliance in this industry. Our investigators continue to make unannounced visits to restaurants throughout South Carolina to remedy widespread labor violations and ensure a level playing field for law-abiding employers.” 

According to the release:

Investigators from the division’s Columbia District Office conducted employee interviews, reviewed time and payroll records and examined employment practices to assess compliance with all applicable labor standards.

The investigations disclosed systemic FLSA violations at all seven restaurants that resulted from the employer’s failure to properly record and compensate employees for all work hours.

Investigations found that restaurant employees often worked in excess of 40 hours a week without any overtime compensation.  Many kitchen staff employees were improperly classified as exempt from overtime pay and were paid a fixed monthly salary—without regard to the actual amount of hours worked—that, in several instances, amounted to less than the federal minimum wage of $7.25 per hour. Additionally, tipped employees, such as servers, hosts and bartenders, were paid wages in violation of the FLSA’s minimum wage and overtime provisions. The employer also failed to maintain accurate records of employees’ work hours and wages, as required.

In addition to paying the back wages owed in this case, the chain of restaurants agreed to maintain future compliance with the FLSA by keeping accurate records of employees’ work hours, wages and other required employment information; paying all employees at least the federal minimum wage; and providing overtime compensation and informing employees in advance that the tip credit will be used.