Hotrods Old Vail ordered to pay 21 employees $34,000

The ruling, announced by the U.S. Labor Department on Monday, said 21 Hotrods Old Vail employees — line cooks and mechanics — were denied overtime for working more than 40 hours a week between July 16, 2012, and Dec. 27, 2014, said Terry Petrilli, the Tucson-based assistant district director of the U.S. Department of Labor Wage and Hour Division.

The 27,000-square-foot restaurant and custom auto shop opened in early July 2012.

Hotrods Old Vail was closed on Monday and officials could not be reached for comment.

Eric Murray, the division’s district director out of Phoenix, would not say what initiated the investigation. Most are prompted by employee complaints.

Petrilli said that even though Hotrods Old Vail’s mechanics and line cooks are listed as salaried employees, they are still entitled to overtime pay once they work more than the government-regulated 40 hours a week.

“What was going on was the line cooks were just being paid a salary and they were eligible to be paid hourly,” Murray said. “The restaurant had a monthly bike night and the mechanics were required to be there but they weren’t being paid.”

In addition to the $34,000 in back overtime pay, Hotrods Old Vail, 10500 E. Old Vail Road, was fined $3,740 in civil penalties because the Labor Department was able to demonstrate that the employer was aware of the hour-and-wage laws but chose not to fully comply.

“They have been cooperative with us and they have taken immediate steps to correct all the issues that arose,” Murray added.

The car-themed restaurant and custom hot rod shop, which officials said cost $11 million to build, has windows in the second-floor dining room that overlook the garage. Diners can watch as mechanics work on hot rods and choppers.