A diner used servers' tip money to pay its bussers' wages. Now it has to pay $1.35 million.
A diner in a Philadelphia suburb must return $1.35 million in back wages and damages to more than 100 employees after it used its waiters’ tips to pay its bussers’ wages, the Department of Labor announced Wednesday.
Federal Judge Eduardo Robreno ruled last month that Empire Diner in Lansdowne, Pennsylvania, “willfully” violated labor laws and ordered it and two defendants – the owner and a manager – to pay $675,626.67 and an equal amount in damages to the affected employees, totaling $1.35 million.
A Labor Department investigation found Empire Diner violated minimum wage, overtime and recordkeeping laws. The chief offense was skirting tip credit requirements by using the service staff’s tips to pay for bussers’ wages, according to the Department of Labor.
The department first filed a lawsuit against the restaurant in 2018. The restaurant's website indicates it operates a single location.
https://www.msn.com/en-us/news/us/a-diner-used-servers-tip-money-to-pay-its-bussers-wages-now-it-has-to-pay-1-35-million/ar-AA11UZnS
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