Restaurant worker fired for not sharing their tips

Under the Fair Labor Standards Act (FLSA), managers and employers are not to be included in tip pools. One Vermont restaurant found itself in hot water with the Department of Labor after firing a server who refused to share tips with the manager. The DOL’s Wage and Hour Division found that the restaurant retaliated against the server.

During the investigation, the WHD also found other violations of the FSLA. The administrative settlement includes $119,605 in back wages and an equal amount in damages to the 43 employees who were required to give tips to the managers and denied overtime pay for any hours over 40 worked per week. Trareeba Ltd., doing business as Colatina Exit in Bradford, Vermont, will also pay a little over $30,000 in penalties to the department for child labor violations and tip violations. 

Child labor violations  

Colatina Exit also employed two 17-year-old delivery drivers who were making time-sensitive deliveries. This is a direct violation of the FLSA. Employers can hire 17-year-olds to make deliveries, but there are many limits on those tasks. Driving can only be incidental to the youth’s employment, no more than 20% of his or her work time can be spent driving.

Youth cannot make time-sensitive deliveries, nor are they allowed to drive any other vehicle besides a car or truck – no buses, golf carts, ATVs or motorcycles. Youth are not permitted to make more than two deliveries in any single day, nor can they handle route sales or deliveries. And they cannot drive more than a 30-mile radius from their place of employment. Youth deserve a safe environment when they work. Employers should follow the law. 

Illegal employment practices hurt workers 

Employers are not allowed to retaliate against employees who claim their rights under federal law. When employers don’t pay tips correctly, it hurts everyone, not only the employee who is denied their fair pay.

Employees are not required to give tips to their employers, supervisors, or managers. Employers, supervisors, and managers are not allowed to participate in a tip pool. Employees and employers can contact the Wage and Hour Division of the Dept. of Labor for more information about child labor violations, the FLSA and workers’ rights, and protection against retaliation.