The U.S. Department of Labor has recovered $184,000 in back wages, damages, and penalties from Sly Fox Brewing Company after an investigation found the company unlawfully withheld tips from employees at two Pittsburgh locations.
The investigation revealed that managers at the Taphouse at the Point and the Brewery at the Highline, also known as Terminal Way, participated in a tip pool, a violation of the Fair Labor Standards Act. This invalidated the employer’s tip credit, requiring them to repay $84,710 in back wages and an equal amount in liquidated damages. The company was also fined $15,435 for willful violations.
“Restaurant workers often make low wages and depend on every dollar earned, including tips, to help support themselves and their families,” said John DuMont, Wage and Hour District Director in Pittsburgh. His statement continued, “Restaurant employers must ensure that tipped employees receive their full pay, in compliance with the federal law.”
“This legal action recovers the workers’ hard-earned wages and sends a message to other restaurant employers that violations come at a cost,” said Philadelphia Regional Solicitor of Labor Samantha N. Thomas.