A restaurant in Oregon said it would fire servers who didn’t surrender their cash tips, a DOL investigation found.
The restaurant said it instead gave staff more reliable earnings by paying twice the minimum wage.
This violated the Fair Labor Standards Act, which stipulates that employers are not allowed to keep staff tips “under any circumstances.” Also, Cooks also weren’t paid overtime wages, per the DOL. The restaurant was ordered to pay $375,000 to affected workers. Read the article