AKRON, Ohio -- Azteca Restaurante Mexicano Inc. in Akron and its owner have reached an agreement with the Labor Department to pay $118,354 for violating federal labor laws, including paying employees less than the minimum wage.

The restaurant and its owner, Salvador Alatorre, agreed to pay $59,177 in back wages and an equal amount in damages to 21 employees to resolve violations of the Fair Labor Standards Act, or FLSA, according to a Labor Department news release issued Wednesday.

The government found the restaurant and its owner failed to comply with labor laws, including those governing minimum wage, overtime and recording-keeping.

The Labor Department's Wage and Hour Division also assessed a civil penalty of $9,646 for "willful and repeated violations."

"A 2011 investigation by the Division disclosed minimum wage, overtime and record-keeping violations at Azteca," the release states. "The restaurant then paid back wages, liquidated damages and a civil money penalty."

The Plain Dealer left a telephone message at the restaurant for a response, which has not yet been returned.

With the current case, investigators found the restaurant paid kitchen staff fixed salaries -- ranging from $550 to $675 per week -- regardless of the number of hours they worked, the release said.

The restaurant also illegally deducted 3 percent from servers' tips when customers paid with credit cards. This resulted in some servers receiving less than the minimum wage. The company illegally computed overtime for servers based only on their cash wages instead of the federal minimum wage of $7.25 per hour. The company also violated overtime laws requiring employers to record and then pay employees for all of the hours they worked.

In addition to paying back wages and damages, Azteca Restaurante Mexicano has agreed to use a computerized time-keeping system.

"Failing to pay workers a legal wage is not only wrong, but it allows companies to gain an unfair advantage over competitors who abide by the law," George Victory, the Wage and Hour Division district director based Columbus, said in the release. "Wage violations can be avoided, and we encourage companies to reach out to us for guidance."

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