The U.S. Department of Labor has secured a $316,000 judgment against LBB Progress Ridge LLC and Amergent Hospitality Group Inc., operators of Little Big Burger restaurants in Oregon and Washington. The judgement comes after investigators found that the companies had required employees at 14 locations to share their tips with managers, violating the Fair Labor Standards Act.
According to the investigators, the employers were aware of federal regulations for tip pools but deliberately compelled workers to share their earned tips. As part of the resolution, a consent judgment orders the employers to pay $148,248 in unlawfully withheld tips and an equal amount in damages to 581 workers. It also prohibits future violations and imposes a penalty of $20,000 on the employers for their willful transgressions.
"Oregon’s Little Big Burger joins a list of shameful U.S. restaurant employers we’ve found shortchanging workers by misusing some of their tips to pay managers not allowed to pocket tips," said Regional Solicitor of Labor Marc Pilotin in San Francisco. "Federal law forbids employers from keeping employees’ tips — either direct from customers or shared in a tip pool — for any purpose."
The investigation covered Little Big Burger locations in Beaverton, Eugene, Hillsboro and Lake Oswego, as well as nine outlets in Portland and one in Seattle. The department's Office of the Solicitor in San Francisco obtained the consent judgment following an investigation conducted by the division's Portland District Office.
"Since 2022, the Wage and Hour Division has recovered more than $2 million in unpaid tips for more than 1,500 people employed as restaurant workers in Oregon and Idaho," said Wage and Hour Division District Director Katherine Walum in Portland. "Federal law protects every worker’s right to be paid their full, earned wages. As Little Big Burger has learned, wage theft brings costly consequences for employers."
Employees and employers seeking confidential compliance assistance can reach out to the agency's toll-free helpline at 866-4US-WAGE (487-9243). The agency also offers a Timesheet App for iOS and Android devices to ensure accurate tracking of hours and pay.
