A popular, long-standing Wellington cafe has been fined $2000 and banned from recruiting overseas labour for six months.
The Labour Inspectorate said Espressoholic on Cuba Street had failed to give holiday pay and other entitlements to 62 current and former workers, and would have to provide evidence it had done so.
Inspectorate regional manager David Milne said it was disappointing to find a well-established business failing to get the basics of employment right.
He said a cheap cup of coffee should not come at the expense of workers in the kitchen washing dishes or behind the espresso machine.
Mr Milne said labour inspectors would be visiting more cafes in the capital this year to ensure they were meeting their obligations.
The cafe has until 22 February to pay the employees.