US Department of Labor finds New Orleans-area restaurant withheld tips

News Release

US Department of Labor finds New Orleans-area restaurant withheld tips

NEW ORLEANS - A U.S. Department of Labor investigation found a restaurant kept tips earned by workers, in violation of federal wage law.

Investigators with the department's Wage and Hour Divisiondetermined that the owners of the restaurant Chopstix Buffet kept all tips intended for their employees that were paid by credit card, in violation of federal tip pooling provisions. The investigation recovered $81,681 in tips for 12 workers. Additionally, one employee was paid only in tips and denied $1,435 in earned minimum wage. The department also assessed $1,188 in civil money penalties.

"The law does not allow owners and managers to keep tips given by customers to service employees," said Wage and Hour Division District Director Troy Mouton in New Orleans. "Tips belong to service workers. Employers that allow managers and owners to receive portions of those tips can face investigations or litigation. The Wage and Hour Division is available to provide compliance assistance to help employers understand their obligations to tipped employees."

For information about the FLSA and other laws enforced by the Wage and Hour Division, contact the division's toll-free helpline at 866-4US-WAGE (487-9243). Learn more about the Wage and Hour Division's PAID program to help employers resolve potential wage violations, and see a search tool to use if you think you may be owed back wages collected by the division. Download the agency's free Timesheet App for Android and iOS devices to ensure hours and pay are accurate.