[Tennessee] Restaurant must pay $179k in back wages for keeping tips

[Tennessee] Restaurant must pay $179k in back wages for keeping tips
18 Nov 2020

According to a press release from the U.S. Department of Labor, a restaurant in Tennessee owes its employees thousands of dollars in back wages for violating the Fair Labor Standards Act. Garcia’s Mexican Restaurant in Franklin, Tennessee, reportedly made minimum wage violations and record-keeping violations, the Labor Department’s Wage and Hour Division (WHD) press release said. (Link via original reporting)

As a result of the violations, the restaurant has been ordered to pay $179,878 to its 40 employees. The release said that an investigation by WHD found Garcia’s had “required servers to pay $7 to $10 per shift into a tip pool that the restaurant retained to pay the hourly rates of non-tipped workers.” Additionally, it was reported that the restaurant kept credit card tips on takeaways, tips intended for hosts. The WHD said both practices violate the Fair Labor Standards Act’s minimum wage policy, employers are not permitted to keep servers’ tips. Fox News reports further.

According to a press release from the U.S. Department of Labor, a restaurant in Tennessee owes its employees thousands of dollars in back wages for violating the Fair Labor Standards Act. Garcia’s Mexican Restaurant in Franklin, Tennessee, reportedly made minimum wage violations and record-keeping violations, the Labor Department’s Wage and Hour Division (WHD) press release said. (Link via original reporting)

As a result of the violations, the restaurant has been ordered to pay $179,878 to its 40 employees. The release said that an investigation by WHD found Garcia’s had “required servers to pay $7 to $10 per shift into a tip pool that the restaurant retained to pay the hourly rates of non-tipped workers.” Additionally, it was reported that the restaurant kept credit card tips on takeaways, tips intended for hosts. The WHD said both practices violate the Fair Labor Standards Act’s minimum wage policy, employers are not permitted to keep servers’ tips. Fox News reports further.

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