Pittsburgh Restaurant Accused Of Illegally Sharing Workers’ Tips With Managers - CBS Pittsburgh

By: KDKA-TV News Staff

PITTSBURGH (KDKA) – A dozen workers are getting $41,000 back after a Pittsburgh restaurant illegally shared their tips, the U.S. Department of Labor said Wednesday.

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Provision PGH at Federal Galley’s operator is accused of improperly using a tip pool, requiring workers to share tips with managers, supervisors and other employees not usually tipped by customers.

Employees had their tips seized to pay the wages of non-tipped employees, including managers, the Department of Labor alleged.

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An investigation by the Wage and Hour Division allegedly found PGH LLC violated the Fair Labor Standards Act and led to the recovery of $41,560 for 12 employees.

“The FLSA allows employers to pay tipped workers as little as $2.13 per hour in direct wages, while taking a credit against the tips earned by the employee to make up remainder of the federal minimum wage of $7.25 per hour,” the department explained in a press release.

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“The employer, however, must notify tipped employees of any required tip pool contribution amount, may only take a tip credit for the amount of tips each tipped employee actually receives, and may not retain any of the employees’ tips for any other purpose.”

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