SIMPSONVILLE, S.C. (WSPA) – Simpsonville restaurant El Jalisco paid out nearly $93,000 to nine employees after a U.S. Department of Labor investigation found it violated the Fair Labor Standard Act.

In South Carolina, workers can make as little as $2.13 an hour as long as they receive tips that get their hourly pay up to minimum wage, but investigators determined that wasn’t happening for some workers at El Jalisco.

An assistant manager who said she has access to the books at El Jalisco told 7 News the issue stemmed from a misunderstanding. She said tipped employees at the restaurant have always been paid the $2.13 minimum, but management didn’t have the documentation to prove it.

The Department of Labor said the restaurant didn’t keep track of the hours employees worked and failed to pay base wages for two servers. The investigation also said employees didn’t receive time-and-a-half pay for working more than 40 hours a week.

According to attorney John Reckenbeil, businesses not paying base wages for tipped employees is a big problem.

“It’s very common,” Reckenbeil said.

The Department of Labor won’t release information on how the investigation started. Reckenbeil said investigations can start with an employee complaint, but probes are usually prompted by random audits.

“Majority of time, they’re looking for your time records, so the biggest thing that throws up the red flag is when you have no time records,” he said.

The assistant manager said employees at El Jalisco didn’t have to “punch in,” allowing their servers to be more flexible with their hours.

Now, she said the restaurant has implemented time cards to make sure their hours are recorded, and they are doing their due diligence to make sure employees get their pay and overtime.

Reckenbeil said of the nearly $93,000 El Jalisco paid in backpay, about a third of it probably went to taxes. He said when employers don’t pay their employees, the public loses out on major tax revenue.

“That’s less money that we have for roads, schools, and so on,” he said.

You can learn more about filing a complaint with the Department of Labor here.