A recent investigation by the U.S. Department of Labor has revealed that a restaurant in the New Orleans area, Chopstix Buffet, withheld tips from its employees, violating federal wage laws. The department's Wage and Hour Division found that the restaurant owners retained all tips paid by credit card that were meant for their workers, which goes against federal tip pooling provisions.
The investigation led to the recovery of $81,681 in tips for 12 employees. Additionally, it was discovered that one worker was compensated solely through tips and was denied $1,435 in minimum wages they had earned. As a result of these violations, the department imposed $1,188 in civil money penalties on the restaurant.
"The law does not allow owners and managers to keep tips given by customers to service employees," said Troy Mouton, District Director of the Wage and Hour Division in New Orleans. He emphasized that "tips belong to service workers" and warned that employers permitting managers or owners to take portions of those tips might face investigations or legal action.
The Wage and Hour Division offers compliance assistance to help employers understand their responsibilities towards tipped employees. For more information about the Fair Labor Standards Act (FLSA) and other regulations enforced by the division, individuals can contact their toll-free helpline at 866-4US-WAGE (487-9243). Additionally, resources such as the PAID program are available to assist employers in resolving potential wage violations. A search tool is also provided for those who believe they may be owed back wages collected by the division. To ensure accurate tracking of hours and pay, the agency offers a free Timesheet App for both Android and iOS devices.
Information from this article can be found here.
