US Department of Labor recovers $618K in back wages for 779 workers denied pay, full tips by South Carolina restaurant group

COLUMBIA, SC - A South Carolina restaurant group has paid $618,666 in back wages to 779 employees and an additional $100,000 in civil money penalties after a U.S. Department of Labor investigation found child labor and wage violations across 13 restaurant locations.

Investigators with the department's Wage and Hour Division found tip pool, recordkeeping, and overtime violations of the Fair Labor Standards Act at multiple Tropical Grille locations. This included allowing managers and supervisors to participate in the restaurants' tip pool, which is expressly prohibited under the FLSA. In addition, the employer failed to combine all hours worked for employees at various locations, which led to some workers not receiving time and one-half their regular rates of pay for hours worked over 40 in a workweek.

The division also determined that Tropical Grille Restaurants violated the hazardous occupation provisions of the FLSA and allowed 14- and 15-year-olds to work longer and later than legally permitted by federal child labor laws.

The division recovered $618,666 in back wages for 779 workers across 13 Tropical Grille locations in Anderson, Clemson, Easley, Greer, Lexington, Mauldin, Simpsonville, and Spartanburg, as well as five locations in Greenville on Pelham Road, Old Buncombe Road, South Main Street, Verdae Boulevard, and Woodruff Road. The division also assessed Tropical Grille Restaurants with civil money penalties totaling $100,000 for the child labor and tip retention violations.

As part of a compliance agreement, the employer is also required to update or create materials that address compliance with child labor laws and provide annual training on child labor regulations for managers and supervisors, among other requirements.

The department's YouthRules! site is a free, online guide that offers information about protections for young workers to youth, parents, employers, and educators. Through the YouthRules! initiative, the department and its partners promote work experiences that prepare young workers to enter the workforce.

Workers and employers can call the Wage and Hour Division with questions and requests for compliance assistance at its toll-free helpline, 866-4US-WAGE (487-9243). Employers are encouraged to use the agency's industry-specific compliance assistance toolkits to learn about their responsibilities under the laws enforced by the division. The agency's PAID program offers employers an opportunity to self-report and resolve potential minimum wage and overtime violations under the FLSA, as well as certain potential violations under the Family and Medical Leave Act.

Learn more about the Wage and Hour Division, including a search tool that workers can use if they think they may be owed back wages collected by the division. Download the agency's free timesheet app for iOS and Android devices to track hours and pay.