Department of Labor recovers $124K in back wages, withheld tips, liquidated damages for 126 employees of restaurants in Massachusetts, New Hampshire, Vermont

Employer: Tito's Taqueria LLC, 898 Putney Road, Brattleboro, VT 05301

Type of action:Administrative settlement

Investigation sites:Greenfield, Massachusetts

Keene, New Hampshire

Brattleboro, Vermont

Investigation findings:The U.S. Department of Labor's Wage and Hour Division'sNorthern New England District Office found Tito's Taqueria, a counter service restaurant, illegally required employees at three locations to share a portion of their tips with managers and failed to pay workers time and one-half their regular rates of pay for hours over 40 in a workweek.

The Fair Labor Standards Actforbids owners and managers from keeping any portion of an employee's tips for any purpose,

Resolution:In an administrative settlement with the division, Tito's Taqueria paid $62,452 in back wages and withheld tips as well as an equal amount in liquidated damages to 126 affected employees across three locations. The employer also paid the department $12,214 in civil money penalties to resolve its violations.

Quote:"The violations by Tito's Taqueria to shortchange workers by misusing their tips to pay managers is a problem we commonly find in the restaurant industry," said Wage and Hour Division District Director Steven McKinney in Manchester, New Hampshire. "The Fair Labor Standards Act forbids employers from keeping employees' tips for any purpose, whether directly from customers or through a tip pool."

In fiscal year 2023, the Wage and Hour Division successfully recovered more than $29.6 million in back wages for nearly 26,000 food serviceworkers nationwide and assessed $6.1 million in civil money penalties in the food services industry.

Workers and employers can contact the division confidentially at its toll-free number, 1-866-4-US-WAGE (487-9243). Learn more about the Wage and Hour Division, including the agency's restaurant compliance assistance toolkit, an overview of FLSA protections for restaurant workersand Workers Owed Wages, a search tool to use if you think you may be owed back wages collected by the division. Workers and employers alike can help track their hours worked and pay by downloading the department's Android and iOS Timesheet Appfor free in English or Spanish.

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