Kentucky restaurant made servers work for tips only, paying no wages, feds say

[TexasTowelie]

A Bowling Green hibachi restaurant that required tipped employees to work only for tips, paying them no wages, was ordered to pay more than $50,000 in back wages, the U.S. Department of Labor says.

The Wage and Hour Division said it recovered $52,805 for 33 employees of Hibachi Grill & Supreme Buffet after an investigation, according to a news release­­.

The law requires that employees who receive tips be paid at least $2.13 an hour by their employer. In cases like this one, where the company does not pay any hourly wages, the government does not give the employer any credit for the tips the employees received and requires the company to pay back the full federal minimum wage of $7.25 per hour for every hour the employees worked without wages, according to the release.

In addition to not paying wages to servers, the restaurant did not pay overtime to other employees as required by law.

Instead, the labor department said the restaurant “paid kitchen helpers, dishwashers, cooks and other workers flat salaries, regardless of the number of hours that they worked,” which was sometimes not as much as they would have made if they had been paid minimum wage for their work.

Read more: https://www.kentucky.com/news/state/kentucky/article253408765.html

[keithbvadu2]

1. Economic after-effects of Trump's Battle of BG

Economic after-effects of Trump's Battle of BG

[jimfields33]

3. Each worker gets 1600 dollars

After taxes probably 1250. The restaurant still made out big.

[Sherman A1]

4. Yes, the restaurant did make it like the bandits they are

They should have had to pay much more in my opinion.

[Haggard Celine]

2. It sure makes a difference when

a Democrat is President. There likely wouldn't have been an investigation if a Republican was in the White House.

I'm happy for the workers. One thing I thought was a stretch was the assertion that not paying a legal wage gave the restaurant an unfair advantage over the others. I disagree.

I've worked in places where the bosses were always screwing people around, and it did not give them an unfair advantage, quite the opposite. When workers are unhappy, the customers can sense it and they don't want to be served by angry people. Employees don't take care of things in the restaurant, either, when they're pissed off all the time. Not paying a fair wage will ruin your business in the long run.