A sushi restaurant in Pennsylvania agreed to repay former workers for illegally withheld tips. On Dec. 3, the law firm representing the employees announced they had agreed on a $40,000 settlement which included payment of tips, damages and attorneys fees.
The workers complained their employers utilized a test to determine what percentage of tips servers would be able to take home. For example, servers who passed an exam on the drink offerings were able to keep 70 percent of their tip earnings. Only those who passed a lengthy and complex menu test were allowed to take home 100 percent of their tips, according to Philadelphia Weekly.
In an interview with CBS Philadelphia, attorney Henry Yampoksky said the policy violated numerous laws, including the Fair Labor Standards Act, Pennsylvania Minimum Wage Act, and the Pennsylvania Wage Payment and Collections Act.
Wage theft is a common issue in Philadelphia, Fabricio Rodriguez, head of Restaurant Opportunities Center in the city, said. Some workers are paid tipped wages - $2.83 in Pennsylvania - for doing work that entitles them to the full minimum wage.
In order to maintain compliance with labor laws, employers need to pay workers the legal minimum wage without docking tips. Attendance software can help businesses keep track of employee time and pay staff accordingly.
All data and information provided on this news blog is for informational purposes only. Infinisource makes no representations as to accuracy, completeness, suitability, or validity of any information on this site and will not be liable for any errors, omissions, or delays in this information or any losses, injuries, or damages arising from its display or use. All information is provided on an as-is basis. Information regarding employment suits and other legal action is not updated after publication, and may not be current.