Hunter
06/13/25
An Iowa City area Mexican restaurant owner is being sued by the US Department of Labor after being accused of paying some workers only in the tips they collected.
Iowa Capital Dispatch reports the lawsuit, filed in U.S. District Court for the Southern District of Iowa, is alleging that Rocio Correa-Mata of Iowa City violated the Fair Labor Standards Act of 1938.
His Mexico Lindo Grill & Cantina has locations in Iowa City, West Branch and North Liberty.
The department alleges that certain servers at the restaurants were “only paid via direct cash and credit tips from customers” and did not receive the federal minimum wage rate of $7.25 per hour.
Correa-Mata is also accused of paying employees less than the time-and-a-half rate to those who worked in excess of 40 hours per week. In addition, Mexico Lindo allegedly paid kitchen workers in cash, at a rate insufficient to cover overtime hours.
According to the lawsuit, the restaurants then failed to create and preserve accurate records of employees’ hours and failed to document each worker’s full name and Social Security number.
The Department of Labor is seeking a court order requiring Correa-Mata to pay 25 different employees their federally-required wages, back wages owed, and damages.
Iowa Capital Dispatch reports attempts to reach Correa-Mata at home or at any of the Mexico Lindo restaurants were unsuccessful.