A restaurant in Texas is to pay $800,000 in minimum wage back wages and liquidated damages to current and former wait staff, stemming from a DOL illegal tip pool investigation.

1. DOL Illegal Tip Pool Investigation
A restaurant in Texas is to pay $800,000 in minimum wage
back wages and liquidated damages to current and former
wait staff, stemming from a DOL illegal tip pool investigation.
The
investigation
revealed that
portions of the
workers’ tips
were illegally
retained ...
to pay for
business items
such as
glassware,
menus, trays -
even their work
uniforms.
These actions resulted in the workers’ hourly wage to be
below the federal minimum wage.
Following FLSA requirements, nonexempt employees should
be paid at least the federal minimum wage of $7.25/hr. for
all hours worked; work beyond 40 hours a week should be
paid at time and one-half of regular rate of pay.
Employers with
Tip employees are required to be informed of the FLSA tip credit
provisions by employers.
tipped
employees are
required to pay
no less than
$2.13/hr. in
direct wages ...
and make up the
difference if
their wages and
tips is less than
the federal
minimum wage
requirement.
copyright 2014