A federal judge in Illinois has amended a previous jury award to employees of an Illinois restaurant for back wages and damages because of an error made due to a jury misunderstanding, the U.S. Department of Labor announced recently.
Dayemi Organization, operating as Longbranch Café and Bakery in Carbondale, and owner Elaine Ramsyer Greenberg must pay $98,400 to 31 employees, the DOL announced Jan. 17. The order, issued by Judge Staci M. Yandle of the U.S. District Court for Southern District of Illinois in Carbondale on Jan. 13, amends a July 2022 jury award of $4,900, "just 10 percent of their back wages," the DOL states in the announcement. The error was made "based on the jury’s instructions and how they interpreted the evidence at trial."
"The court responded to a motion made by the department to alter the judgment in light of the error," the DOL states in the announcement. "The $98,400 award is in addition to the $290 in back wages and damages already awarded by the court on summary judgment."
The judgement resulted from a review of the restaurant's payroll records from February 2018 through February 2020, the DOL reports. The investigation found the company and owner Greenberg operated an illegal tip pool in violation of federal law.
Baristas and servers at the Longbranch cafe were required to pool their tips in a jar, with the money then divided at the end of the shift between baristas and servers, who received 90%, and cooks and dishwashers, who got 5% each. Cooks and dishwashers do not typically receive tips, the DOL reports.
“When an employer claims a tip credit, employer-required or mandatory tip pools may only include employees who customarily and regularly receive tips,” St. Louis Wage and Hour Assistant District Director Meghan Svacina said in the report.
The decision restored the amount of back wages to the workers that the investigation determined was due, according to Regional Solicitor of Labor Christine Heri in Chicago, "and shows the U.S. Department of Labor will pursue all available avenues to ensure workers receive their rightful wages."
“Violations like these are common in the food service industry," Svacina said, "and we encourage workers to contact us if they believe their employer is not paying them all of their earned wages.”
