An investigation by the Department of Labor recovered $61,788 that the managers of a restaurant in Concord, New Hampshire, had improperly taken from the tips of its 39 employees, who were thus compensated for damages.
Mexican food restaurant Dos Amigos Burritos improperly included managers in the tip fund, the Department of Labor said in a statement Monday.
Under a law that went into effect in April 2021,
an employer may not keep employee tips under any circumstances;
neither can managers and supervisors, nor through tip groups.
This prohibition applies even if tipped workers are paid hourly wages at or above the full minimum wage.
[An Arkansas waitress is fired after receiving a $4,400 tip.]
“Tipped workers in the food service sector depend on their hard-earned tips to make ends meet.
Restaurant employers must understand that keeping tips from workers or diverting a portion of tips to managers or supervisors in a tip pool is
illegal
," said the department's Wage and Hour Division District Director. , Steven McKinney in Manchester, New Hampshire.
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In addition, the Department of Labor found that three children under the age of 15 worked at the Dos Amigos Burritos location in Portsmouth, New Hampshire, violating the Fair Labor Standards Act's child labor hour restrictions.
Last year, more than a dozen employees received a $41,000 lump sum award from the Department of Labor after a Pittsburgh restaurant was caught misusing tips, according to KDKA.