The U.S. Department of Labor has concluded an investigation into Sly Fox Brewing Company, resulting in the recovery of $184,000 in back wages, damages, and penalties. The investigation found that the company unlawfully withheld tips from employees at its Pittsburgh locations.

The Wage and Hour Division discovered that Sly Fox Brewing Company allowed managers to participate in the tip pool, violating the Fair Labor Standards Act (FLSA). Federal law prohibits employers or managers from retaining employee tips for any purpose. Consequently, the tip credit claimed by Sly Fox was invalidated, necessitating the return of tips to employees and payment of full federal minimum wage.

The Department recovered $84,710 in owed wages and an equal amount in liquidated damages. Additionally, a civil money penalty of $15,435 was imposed for willful violations of the FLSA.

“Restaurant workers often make low wages and depend on every dollar earned, including tips, to help support themselves and their families,” stated John DuMont, Wage and Hour District Director in Pittsburgh. “Restaurant employers must ensure that tipped employees receive their full pay, in compliance with federal law.”

Samantha N. Thomas, Philadelphia Regional Solicitor of Labor added: “This legal action recovers the workers’ hard-earned wages and sends a message to other restaurant employers that violations come at a cost.” She emphasized that "the U.S. Department of Labor is prepared to use every tool available, including litigation, to prevent employers from depriving workers of their wages."

Sly Fox Brewing Company has been operating since 1995 with multiple locations across Pennsylvania including Phoenixville, Wyomissing, Pottstown, Malvern as well as two sites in Pittsburgh where the violations occurred.

For more information about the Wage and Hour Division or if you believe you may be owed back wages collected by them, individuals can contact their toll-free number at 1-866-4-US-WAGE (487-9243). The division offers protection regardless of immigration status and can communicate with workers in over 200 languages.