Pierce County Thai restaurant chain broke OT laws, owes thousands in back wages
A Puyallup-based Thai restaurant with five South Sound locations has been ordered to pay more than $64,000 in back wages after failing to follow federal overtime laws for at least three years, the Department of Labor said April 2.
Chili Thai, which owns and operates four restaurants in Pierce County and one in Kitsap, also owed $64,183 in liquidated damages to the 51 affected employees. The DOL Wage and Hour Division also determined a $9,163 civil money penalty “for the reckless nature of the violations,” according to the news release.
“Chili Thai violated federal overtime regulations by underpaying employees working long hours to provide for themselves and their families,” said Thomas Silva, the division’s Seattle director. “We urge employers to review their practices and avoid costly consequences for violating the law.”
Thongchai Meelap is listed as the proprietor on state business filings. His company, which last year took over the longstanding Galanga Thai on Broadway downtown, did not immediately respond to a request for comment.
The investigation spanned November 1, 2020, through Oct. 31, 2023.
During that time, DOL determined that the restaurant chain paid employees on a semi-monthly basis, or 24 times a year. Workers earned overtime wages — 1.5 times their standard rate — but only after 88 hours in a pay period. The Fair Labor Standards Act requires that workers earn overtime beyond 40 hours per week.
According to the release, Chili Thai has adjusted its pay periods to a more typical bi-weekly schedule and its processes “to ensure future compliance.”
Origins of the original complaint are unknown, confirmed Michael Petersen, spokesperson for the agency’s western region. DOL does not reveal the identity of an investigation source to protect their identity, “whether it is an employee or a competitor,” he said.
Investigations typically begin with either a worker or third-party complaint, or through an industry-specific survey, such as one directed toward agriculture or garment workers, he added.
The food service industry is the most common violator of wage and overtime laws, according to annual DOL data, followed by construction, health care and retail. In 2023, the agency took action against more than 4,000 food service businesses, recouping nearly $30 million in back wages for more than 25,000 workers.
Last October, Mayan Mexican, a restaurant chain in Lacey, was found to owe more than $52,000 to 20 workers for skirting overtime laws.
This story was originally published April 3, 2024 at 2:00 PM.