Apr. 26—Restaurants in Derry and Londonderry have been ordered to pay more than $890,000 in back wages and damages following an investigation into allegations of numerous violations of the Fair Labor Standards Act, federal officials said Monday.

A U.S Department of Labor (DOL) investigation found that La Carreta-Derry Inc. in Derry and La Carreta-Londonderry LLC in Londonderry, both doing business as La Carreta Mexican Restaurant, and Heriberto Leon violated minimum wage, overtime and record-keeping requirements, including paying some servers only tips, paying no overtime to employees who received only tips, and paying straight time wages to employees who worked overtime.

Restaurant management also failed to keep track of hours for some employees, federal officials said in a news release.

The restaurants have been ordered to pay $445,085 in back wages and another $445,085 in damages to 63 employees based on the findings of the investigation.

The judgment also requires them to maintain wage, record-keeping and anti-retaliation requirements in keeping with federal labor laws.

It also requires them to cooperate with any U.S. Department of Labor investigation under the Fair Labor Standards Act, including providing investigators access to all required records and providing truthful responses, information and documents.

"Paying restaurant workers straight-time for their overtime hours and requiring servers to work for tips only with no cash wages is quite simply wage theft," said Wage and Hour Division District Director Steven McKinney, of the DOL's Manchester office. "While we often find such violations in the restaurant industry, these violations can easily be prevented if employers know and understand the Fair Labor Standards Act's requirements. We encourage them to reach out to us with questions they may have about their responsibilities under the law."

"The department moved for summary judgment in this case, and it was in the wake of that motion that the employers decided to settle for $890,169 in back wages and liquidated damages. This case shows that the department will use all the tools it has under the Fair Labor Standards Act to prevent wage theft and recover stolen wages and liquidated damages," said Regional Solicitor of Labor Maia Fisher of the department's Boston, Mass., branch.