Managers at a New Hampshire burrito restaurant who kept employee tips shouldn't have, a U.S. Department of Labor (DOL) division director said in a news release.
A DOL Wage and Hour Division investigation found Dos Amigos Burritos LLC in Concord, New Hampshire improperly included managers in its tip pool, according to a Friday, Feb. 18 news release. Dos Amigos Burritos had to pay out $61,788 in tips and liquidated damages to 39 employees "to rectify the violation and compensate them properly," the news release said.
Management as part of a tipping pool is essentially stealing from workers, DOL Wage and Hour Division Northern New England District Director Steven McKinney said in the news release.
"Tipped workers in the food services industry rely on their hard-earned tips to make ends meet," McKinney said. "Restaurant employers must understand that keeping workers' tips or diverting a portion of these tips to managers or supervisors in a tip pool is illegal. To avoid costly mistakes, like those found in this investigation, employers should contact us to discuss their responsibilities."
The investigation followed DOL's final rule, "Tip Regulations under the Fair Labor Standards Act (FLSA)," that went into effect in late April. Under the rule, there are no circumstances in which an employer cannot keep employees' tips.
Managers and supervisors "also may not keep tips received by employees, including through tip pools," the news release said. "This prohibition applies even if tipped workers are paid hourly at rates equal to or above the full minimum wage."
DOL's investigation also turned up three 15-year-old minors working Dos Amigos Burritos' Portsmouth, New Hampshire location, violating FLSA's child labor hours restrictions. Dos Amigos Burritos also employed workers younger than 16 for more than five hours on a school day and as late as 10 p.m.
Dos Amigos Burritos paid $2,073 in civil penalties "to resolve these child labor violations," the news release said.