A recent investigation by the US Department of Labor’s Wage and Hour Division revealed stark violations of tip pool requirements at a restaurant in Los Angeles, California. The restaurant allowed a manager to partake in tip pooling, retaining more than $28,000 in workers’ tips from April 2021 to October 2022, which rightfully belonged to the staff.
35 Employees by Manager That Illegally Took Portion of Tips
This isn’t the first instance of labor law violations for this employer. The Division had previously unearthed infringements, including a 2012 investigation that led to the recovery of $5,300 in back wages for 14 employees and a 2020 probe at another restaurant owned by the employer, resulting in the recovery of $16,253 owed to one employee.
The current investigation led to the recovery of $28,213 in unpaid tips and $28,213 in liquidated damages for 35 employees, along with civil money penalties totaling $10,103 due to the employer’s repeated violations.
Wage and Hour Division Assistant District Director Siriporn Poondee in Los Angeles emphasized the employer’s responsibility to ensure workers receive their rightful earnings, including tips. Poondee urged employers in the restaurant industry to utilize the online tools provided for compliance or seek assistance from the Department of Labor.
Local Organizations Lend a Hand
This investigation was part of the department’s broader initiative, the Food Services Workers Initiative, aimed at promoting fair workplaces and supporting essential workers. Collaboration with local stakeholders, such as the Koreatown Immigrant Workers Alliance, played a pivotal role in concluding the investigation successfully.
The case highlights the critical importance for all Business owners, especially in the hospitality sector, to adhere to labor laws, particularly regarding fair compensation. Employers must prioritize compliance with tip regulations and ensure that employees receive their lawful earnings, including tips left by customers.
Conclusion
Business owners must use the resources available, such as online tools provided by the Department of Labor, to understand and comply with labor laws. Such measures not only safeguard employees’ rights but also shield employers from significant penalties and maintain a fair and lawful working environment.