The U.S. Department of Labor has successfully recovered $158,452 in back wages and damages for 14 workers who were denied their rightful tip portions and overtime by two Domo Café restaurants in Honolulu. The investigation, conducted by the Department's Wage and Hour Division, revealed that the owner of the restaurants and his wife, who managed the establishments, unlawfully kept parts of tips from a tip pool. This action was found to be in violation of the Fair Labor Standards Act (FLSA), which clearly prohibits employers, including managers and supervisors, from retaining any portion of tips earned by employees.

In addition to withholding tips, investigators discovered that one employee had not been paid all owed overtime wages. As a result of these findings, $72,054 was recovered in tips for 14 employees, $79,226 in liquidated damages was awarded to these workers, and $7,172 was paid in overtime wages to one employee. A civil money penalty amounting to $2,030 was also imposed due to the reckless nature of these violations.

Wage and Hour Division District Director Terence Trotter emphasized the importance of compliance with labor laws: “It is critically essential for non-management service staff to be able to retain the entirety of the tips they earn so they can offset living expenses and meet their financial goals,” he stated. Trotter urged restaurant employers to review their tip retention policies to ensure they align with FLSA requirements.

The Department encourages workers to use its Workers Owed Wages search tool if they suspect they are owed back wages. Both employers and employees can reach out for assistance through a toll-free number or access various resources provided by the Wage and Hour Division. These resources include compliance assistance toolkits specifically designed for restaurants and an overview of FLSA protections available for restaurant workers.

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