The Employment Relations Authority (ERA) has fined Hai Ung and Vuochhuor Ung, who operate the South Dunedin Satay House.
It is the second time the restaurant has been in trouble with the ERA, after it breached the Minimum Wage Act in 2007.
The pair have been penalised for failing to keep accurate wage, time and leave records, following a Labour Inspectorate investigation.
Labour Inspectorate Regional Manager Jeanie Borsboom said the restaurant was one of 41 businesses visited by in Dunedin in November last year.
"When questioned about why they did not have employment records, Mr Ung told the Labour Inspector he `forgot','' Ms Borsboom said.
The employers were also visited previously by the Inspectorate in 2007 following a complaint from three employees and were found to have breached the Minimum Wage Act, failed to keep accurate records and did not have employment agreements.
At that time, arrears were recovered and Mr and Mrs Ung were provided with Employment New Zealand's educational material to assist them with understanding their obligations as employers.
"The responsibility for keeping accurate wage, time and leave records is always on the employer, and there is no way around this.
"If the Inspectorate sees this happening through our proactive investigations, or investigations initiated through employee complaints, we will seek penalties.
"These employers had been in business for nearly 20 years and should be well aware of their obligations to all employees.''
Ms Borsboom said the Inspectorate revisited businesses to ensure continued compliance with employment law, and Mr and Mrs Ung still failed to keep accurate records.
"This should send an obvious message to employers that where the Labour Inspectorate has visited your business, we expect to see continued compliance, and we will hold employers to account where this isn't the case.''
"This should also encourage consumers to think twice about whether employees are being treated fairly in their favourite restaurant or takeaway spot,'' Ms Borsboom said.