A taco chain made staff share their tips with other workers, the labor department claims.
The "invalid" tip pool ultimately meant workers also paid the correct wages, the DOL said.
The DOL filed a lawsuit against three Barrio Taco restaurant in Michigan, seeking $823,000 in back wages and damages.
The managers then redistributed these tips to non-tipped employees, including kitchen staff, the DOL said.
AdvertisementAdvertisementAs the restaurants weren't eligible for a tip credit, the servers' and bartenders' wages minus tips were pushed below the federal minimum wage.
Persons:
DOL, Jacob Hawley, Hawley, Barrio
Organizations:
Barrio Taco, Service, Department of Labor, Barrio, Detroit Free Press
Locations:
Michigan, Wall, Silicon, East Lansing, Grand Rapids, Ohio