Pennsylvania Diner must give staff $1.35 million after using tips to pay wages

A Pennsylvania restaurant has been ordered to pay $1.35 million in back wages and damages to 107 employees. The Department of Labor said Empire Diner used tips from servers to pay waiters’ wages. Empire Diner told USA Today that he intended to appeal the decision. Loading Something is loading.

A Pennsylvania restaurant has been ordered to pay its staff $1.35 million after it used a portion of waiters’ tips to pay waiters’ wages in a series of labor law violations.

The Department of Labor ruled that the Empire Diner, in Landsdowne, would have to pay back wages and damages to 107 servers at the restaurant.

Empire Diner would order servers to hand over 10% to 15% of their total tips to pay waiters’ wages and interfered with a subsequent investigation when it told employees to lie about the company’s illegal practices, the department said. .

The department also found that the restaurant violated the Fair Labor Standards Act by violating minimum wage, overtime and record-keeping provisions, which also included illegal overtime practices.

“Tipped workers in the food service industry rely on their hard-earned tips to make ends meet. By siphoning off a portion of these tips, restaurant employers violate federal labor laws and harm workers and their families,” said Principal Wage and Hour Associate Administrator Jessica. Loman.

The fine, imposed on owner Ihsan Gunaydin and manager Engin Gunaydin, included $675,626 in back wages and a matching amount in damages. The restaurant will also have to pay a $47,620 civil penalty due to the “intentional nature” of the violations.

Empire Diner told Insider in an email that it had filed an appeal of the sentence. The company said it had experienced “unintentional difficulties with record-keeping and reporting requirements, which we did not learn about until a 2018 audit.”

“In no instance were employees paid less than minimum wage in wages plus tips nor did the Diner withhold employee tips or otherwise manipulate them by the Diner or anyone in management. We believe that, when all of the evidence is considered , the judgment against us will be revoked”, he affirmed.

The Department of Labor argued that such practices could damage a restaurant’s reputation, particularly in a tight job market where demand for staff outstrips supply.

“Retaining and recruiting workers becomes much more difficult in today’s rapidly changing job market, where workers have choices about where and for whom they work,” Looman said.

“Employers who take advantage of workers by violating their legal rights will find it increasingly difficult to hire and retain the people they need to fill jobs and stay in business.”

This week, a Texas barbecue restaurant was ordered to pay workers $230,000 after their tips were shared with managers.

Source: www.businessinsider.com