The U.S. Department of Labor’s Wage and Hour Division reports that it found Pennsylvania’s Sly Fox Brewing Co. unlawfully kept a portion of the tips earned by workers, allowing managers to participate in the restaurant’s tip pool, a violation of the Fair Labor Standards Act (FLSA).
Federal law forbids employers or managers from keeping employees’ tips for any purpose, according to the department. As a result, the tip credit claimed by the employer became invalid and the employer was required to return the tips to employees and pay them the full federal minimum wage.
According to the federal agency, it recovered $84,710 in back wages and an equal amount in damages for the employees, and assessed a $15,435 penalty for violations of the FLSA.
“Restaurant workers often make low wages and depend on every dollar earned, including tips, to help support themselves and their families,” said Wage and Hour District Director John DuMont in Pittsburgh. “Restaurant employers must ensure that tipped employees receive their full pay, in compliance with the federal law.”
Sly Fox Brewing Co. has operated in Pennsylvania since 1995. In addition to two Pittsburgh locations, the company has pubs in Phoenixville, Wyomissing, Pottstown, and Malvern.
Source: Department of Labor
Topics USA
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