LUBBOCK, Texas—The U.S. Department of Labor's Wage and Hour Division has fined two Lubbock restaurants for improperly withholding and mismanaging employee tips.
During investigations, Johnny Fab's Cadillac Grill, located at 11605 Slide Road; The Catch, located at 5111 82nd Street; and Lamesa's Ohana's Japanese Steak Restaurant were found to have violated gratuity protocols.
The investigations led to the recovery of $61,646 for 140 employees across the three establishments, as well as $7,200 in penalties.
Investigators discovered that Tres Patos Management LLC, the operator of Johnny Fab's, withheld gratuities to compensate for register shortages at the bar. This resulted in bartenders' pay falling below the minimum wage.
Johnny Fab's was established last year. $2,126 was recovered for 25 employees, and the company was fined $3,425. The Catch was subjected to penalties for permitting salaried supervisors to participate in the restaurant's tip pool.
This action resulted in a $3,036 fine and a recovery of $13,752 for 107 employees.
Ohana's Japanese Steak Restaurant was also discovered to have included the proprietor in the tip pool, retaining the majority of the tips for themselves.
This resulted in the recovery of $43,641 and a sanction of $768 for eight employees.
Evelyn Ortiz, the District Director of the Wage and Hour Division in Albuquerque, underscored the fact that tips are the property of the workers who earn them and cautioned that employers who underpay tipped workers will face severe repercussions.
The results underscore the persistent challenges associated with tip management in the restaurant sector, which has led to demands for more stringent adherence to labor laws.
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