The U.S. Department of Labor has recovered $64,656 in back wages from LaLobe Inc., a family-owned piercing salon in Dallas, Texas. The recovery follows an investigation by the Wage and Hour Division, which found that the employer had illegally withheld tips from three employees.
According to federal law under the Fair Labor Standards Act (FLSA), tips are the property of the employees who receive them. Employers are prohibited from keeping any portion of these tips or allowing managers and supervisors to share in them. Additionally, LaLobe Inc. failed to maintain records of hours worked and tips owed to employees as required by federal regulations.
“Federal law forbids employers from keeping any portion of employees’ tips or allowing them to be shared with managers or supervisors,” explained Wage and Hour Division District Director Jesus A. Valdez in Dallas. “The errors by LaLobe Inc. in this case should serve to remind other employers not to make the same mistakes and to make certain their pay practices comply with federal law.”
For more information about the Wage and Hour Division, including tools for determining if back wages are owed or how to file an online complaint, individuals can visit the agency's website. Confidential compliance assistance is available through a toll-free helpline at 866-4US-WAGE (487-9243). The agency also offers a Timesheet App for iOS and Android devices, available in English and Spanish, to help ensure accurate tracking of hours worked and pay received.
