Restaurateur Settles FLSA Violation Charges

November 29, 2004 ( - A Utah-based restaurant co-owner has settled both civil and criminal charges over violations of the Fair Labor Standards Act (FLSA).

Lily Lei, co-owner of the China Lily Restaurant in Sandy, Utah, has pleaded guilty to a criminal misdemeanor for willful violations of federal overtime regulations, according to She will now be on twelve months probation, as well as owing 120 hours of community service. The charges being settled asserted that Lei made numerous false statements and provided falsified records indicating that some employees had been paid back wages when in fact they had received nothing of the sort.

The Department of Labor (DoL) had also filed a civil suit against Lei that has now settled. Lei has signed a consent judgment that will require her and the restaurant to pay a total of over $42,000 in overtime back pay and interest to 27 employees, according to She has also agreed to abide by the FLSA in the future. In a separate agreement, Lei and the restaurant have agreed to pay almost $18,000 in penalties for willful and repeated violations of the federal statute.

These settlements are the end result of a 33-month investigation by the DoL, according to