A restaurant in Charleston, South Carolina, is paying $624,017 in wages after including management and other untied employees in a tip pool.
167 Raw King Street LLC, operating as 167 Raw, “unlawfully asked tipped employees to share tips, which invalidated the employer’s claim for credit use tips,” according to a Monday newsletter from the Ministry of Labor.
The restaurant “failed to tip employees the difference between their direct wages and the federal minimum wage,” the statement said, adding that the tip also resulted in a violation. overtime pay.
“Restaurant employers must know and comply with federal requirements to claim tip credits. 167 Raw King Street LLC violations are common in the restaurant industry, and they can quickly lead to costly consequences,” Wage and Hour Area Manager Jamie Benefiel said in a press release. .
The Department’s Wage and Hour Division recovered $624,017 from the restaurant, which officials said “was short of 92 workers.”
167 Raw King Street LLC in a statement to USA TODAY said it had entered into a voluntary agreement with federal officials.
“We continue to prioritize our team members and opted to enter this voluntary agreement with the Department last year to ensure that our valued team members continue to be well compensated.” within the framework of evolving federal guidelines,” the statement said.
This early year, department said A Florida restaurant operator owed 10 employees more than $118,000 after forcing servers to work to collect tips alone and denying overtime pay.
Officials in the department’s Wage and Hour Division recovered more than $34.7 million for more than 29,000 food service industry workers in fiscal year 2021, the Labor Department said Monday.