FAIRBANKS — Gallo’s Mexican Restaurants and Taco King Inc. has agreed to pay more than $850,000 in overtime and damages to 159 employees in Alaska, the Alaska Department of Labor and Workforce Development announced Wednesday.

Gallo’s Mexican Restaurant and Cantina in Fairbanks is located at 60 College Road, and Taco King is located at 200 Old Steese Highway. The company also has restaurants in Anchorage. 

The agreement is one of the department’s largest recoveries of overtime wages and was secured by the department’s Wage and Hours Administration, according to a department news release. A recent investigation revealed the company had violated the Alaska Wage and Hour Act and failed to keep accurate payroll records. 

A previous investigation into Gallo’s Mexican Restaurants and Taco King Inc. showed the business had violated Alaska labor and wage laws, resulting in a $50,000 collection of unpaid wages and damages. 

“Wage violations are not uncommon in the restaurant industry where workers may not know their rights or are afraid to speak up,” Labor Commissioner Heidi Drygas said in the news release. “This enforcement puts money back where it belongs — in the pockets of hard-working people and their families.”

Alaska’s wage law requires overtime pay for all hours worked over eight in a single day or more than 40 hours in a week, for covered nonexempt employees. 

Contact the newsrom at 459-7572.