HOUSTON – The U.S. Department of Labor has filed a lawsuit requesting that a federal court mandate the owner and operator of three popular restaurants in north Houston, specifically in Tomball and Spring, to repay wages and damages to workers affected by the alleged misuse of their tips for business expenses.
The allegations are based on investigations by the department’s Wage and Hour Division. These investigations revealed that Tejas Chocolate LLC and Tejas Dragon Companies LLC collected employees’ tips ostensibly for distribution among them. However, it was found that some tips were diverted for business purposes, which violates the Fair Labor Standards Act (FLSA). According to the law, tips are the property of those who earn them and cannot be used to cover business expenses.
The lawsuit, filed by the department’s Office of the Solicitor, seeks back wages and an equal amount in liquidated damages for current and former employees of two locations: Tejas Chocolate & Barbecue (operated by Tejas Chocolate LLC) and Tejas Burger Joint (operated by Tejas Dragon Companies LLC), from May 2021 to May 2023. The suit may extend beyond this period if further violations are discovered.
“When it comes to workers’ tips, the law is crystal clear: tips are the property of the workers who earn them,” stated Regional Wage and Hour Administrator Betty Campbell in Dallas. “The owner and operator of Tejas Chocolate & Barbecue and Tejas Burger Joint willfully deprived employees of all their hard-earned tips and used their money to illegally benefit their businesses.”
Filed on July 19, 2024, in the U.S. District Court for the Southern District of Texas, Houston Division, this lawsuit underscores the Department of Labor's commitment to protecting worker rights.
“The Department of Labor is determined to protect the rights of all workers when their employers shortchange them for any reason and will use all legal means necessary,” said Regional Solicitor John Rainwater in Dallas. “The operator of these businesses directly violated the law, denying employees all the tips left by their customers to recognize their good service.”
Tejas Chocolate LLC was founded in 2011 serving north Houston. In 2019, its founder also established Tejas Dragon Companies LLC in Tomball.
For more information about FLSA or other laws enforced by the division, contact their toll-free helpline at 866-4US-WAGE (487-9243). Both workers and employers can confidentially call with questions from anywhere; assistance is available in over 200 languages.
Learn more about wage claims through a search tool provided by the Wage and Hour Division. Additionally, a new Timesheet App is available free for iOS and Android devices in English and Spanish to help track hours worked and pay received.
Court: U.S. District Court for the Southern District of Texas, Houston Division
Docket Number: 4:24-cv-02695
