A Philadelphia diner has been ordered to hand $1.35 million to workers after it used tips to pay wages – By Ryan Hogg (Business Insider) / Sept 24, 2022
- A Philadelphia diner was ordered to pay $1.35 million in back wages and damages to 107 employees.
- The Department of Labor said Empire Diner used server tips to pay bussers’ wages.
- Empire told USA Today it intended to appeal the decision.
A Philadelphia diner has been ordered to pay its staff $1.35 million after it used a portion of servers’ tips to pay bussers’ wages in a string of labor law violations.
The Department of Labor ruled that Empire Diner would have to pay back wages and damages to 107 servers at the restaurant.
Empire Diner would order servers to hand over 10% to 15% of their total tips to pay bussers’ wages, and interfered with an ensuing investigation when it told employees to lie about the company’s illegal practices, the department said.
The department also found the diner breached the Fair Labor Standards Act by violating minimum wage, overtime and record-keeping provisions, which also included illegal overtime practices.
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