The U.S. Department of Labor has recovered $124,904 in back wages, withheld tips, and liquidated damages for 126 employees of Tito’s Taqueria LLC, a restaurant chain with locations in Massachusetts, New Hampshire, and Vermont.
The Wage and Hour Division's Northern New England District Office found that Tito’s Taqueria required employees to share a portion of their tips with managers and failed to pay workers time-and-a-half for hours worked over 40 in a week. Both practices are violations of the Fair Labor Standards Act (FLSA), which prohibits owners and managers from keeping any portion of an employee’s tips.
In an administrative settlement with the division, Tito’s Taqueria paid $62,452 in back wages and withheld tips as well as an equal amount in liquidated damages to 126 affected employees across three locations. The employer also paid $12,214 in civil money penalties to resolve its violations.
“The violations by Tito’s Taqueria to shortchange workers by misusing their tips to pay managers is a problem we commonly find in the restaurant industry,” said Wage and Hour Division District Director Steven McKinney in Manchester, New Hampshire. “The Fair Labor Standards Act forbids employers from keeping employees’ tips for any purpose, whether directly from customers or through a tip pool.”
In fiscal year 2023, the Wage and Hour Division successfully recovered more than $29.6 million in back wages for nearly 26,000 food service workers nationwide and assessed $6.1 million in civil money penalties within the food services industry.
Workers and employers can contact the division confidentially at its toll-free number: 1-866-4-US-WAGE (487-9243). More information about the Wage and Hour Division is available on their website including resources such as the restaurant compliance assistance toolkit and an overview of FLSA protections for restaurant workers. Additionally, there is a search tool available for those who think they may be owed back wages collected by the division. The department also offers a free Timesheet App available on Android and iOS to help track hours worked and pay.
