Julie A. Su Secretary of Labor | Twitter Website
A Vermont restaurant server was found to have been retaliated against by their employer, resulting in a $50,000 punitive damages settlement and $829 in back pay. The U.S. Department of Labor investigation revealed that the employer, Trareeba Ltd., operating as Colatina Exit in Bradford, Vermont, unlawfully included managers in its tip pool, violating the Fair Labor Standards Act.
Furthermore, the investigation discovered that the restaurant failed to pay workers time and a half for hours worked over 40 in a workweek and employed two 17-year-old delivery drivers for time-sensitive deliveries, in violation of federal child labor regulations.
In response to the findings, Colatina Exit paid $119,605 in back wages and an equal amount in liquidated damages to affected employees. Additionally, the restaurant paid civil money penalties totaling $28,132 for child labor violations and $3,393 for tip violations.
Wage and Hour Division District Director Steven McKinney in Manchester, New Hampshire, expressed, "Colatina Exit’s illegal employment practices hurt workers and undercut law-abiding employers who treat their employees fairly. The law requires that tips go to employees, not their manager." He emphasized the division's commitment to protecting workers' rights and ensuring they receive the wages they are owed.
The investigation highlighted that the Fair Labor Standards Act prohibits employers from keeping any portion of employees' tips for any purpose, including through a tip pool. Employers are also prohibited from requiring workers to give their tips to the employer, a supervisor, or a manager.
The Department of Labor's initiatives, such as YouthRules! and Seven Child Labor Best Practices for Employers, aim to promote safe and positive work experiences for young workers and help employers comply with regulations.
Workers and employers are encouraged to contact the Wage and Hour Division confidentially for assistance and information on FLSA protections. Additionally, the division offers resources like the Timesheet App to help track hours worked and pay accurately.
