Federal regulators on Monday filed a complaint against the Cheddar's Casual Cafe locations in Lubbock, Irving and Oklahoma City.
Cheddar's agreed to settle out of court for allegations of not paying employees at least minimum wage and also not paying them properly for overtime between August 2008 and August 2010.
Cheddar's neither admitted nor denied any wrongdoing in court records but agreed to pay $99,168.49 in back wages. Cheddar's also agrees to pay the U.S. Department of Labor $62,417.35 in liquidated damages.
The Cheddar's location in Lubbock had already suffered a massive public relations blow this month when the City of Lubbock said 7,000 or more people may have been exposed to Hepatitis A while eating there. The City said an employee of Cheddar's had tested positive and might have exposed others. Lubbock spent roughly a quarter of a million dollars for vaccines to treat those who were potentially impacted.
At the time, Cheddar's pointed out in a written statement that "the incident has been traced to the employee and not to the restaurant itself."
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