Big Texan Steak Ranch Settles Labor Dispute for $800K

June 25, 2014

The Big Texan Steak Ranch in Amarillo, Texas, has paid $800,000 to settle a Labor Department dispute alleging the restaurant took too much of a bite out of tips to workers.

On June 23, the department announced the agreement with the Amarillo restaurant famous for its 72-ounce steak dinner that’s free if eaten in an hour.

A 2011 federal audit and investigation found minimum-wage and record-keeping violations involving pooling of tips and use of some tips for business costs.

Co-owner Bobby Lee says the restaurant settled the case last September and paid $650,000 in back wages and $150,000 in damages to current and former staff.

Lee and his brother Danny Lee, in a statement, say the Big Texan Steak Ranch has made compliance changes, did not underpay anyone and the mistake was administrative.

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Latest Comments

  • June 26, 2014 at 8:47 am
    txmouthbreatherboogereatertx says:
    Yes but 1: It appears that it was first reported in 2011. 2: Because Texico is a foreign land, they do not follow the same rules as they would in the US. We follow Common La... read more
  • June 25, 2014 at 4:52 pm
    Agent says:
    Booger, I hate to tell you, but State Farm & Toyota are not restaurants and have exemplary records in treatment of employees. Perhaps the restaurant was struggling to pay... read more
  • June 25, 2014 at 2:47 pm
    txmouthbreatherboogereatertx says:
    Not sure if I should be surprised that someone would need to eat 4.5 pounds of food in an hour or that Texico has a Department of Labor. I hope State Farm and Toyota know abo... read more
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