In an action that underscores a clear message about adherence to federal wage laws, the Department of Labor has levied penalties against Pittsburgh-based Sly Fox Brewing Company for misallocating employee-earned tips. According to the WTAE, managers were unlawfully included in the tip pool, and consequently, the establishment was ordered to pay a sum exceeding $184,000 in back wages, damages, and penalties.
This restitution follows an investigation into two downtown locations of the Sly Fox Brewing Company. The department found that the restaurant's practice effectively deprived its workers of earned tips, thus violating the Fair Labor Standards Act. According to CBS News Pittsburgh, this act is designed to protect workers by ensuring proper minimum wage, overtime pay, recordkeeping, and youth employment across various sectors. Furthermore, this conduct invalidated the tip credit claimed by the employer, necessitating the payment of full federal minimum wages to the affected employees.
"Restaurant workers often make low wages and depend on every dollar earned, including tips, to help support themselves and their families," said Wage and Hour District Director John DuMont in a statement detailed by CBS News Pittsburgh. He further stressed the importance of adhering to federal law to ensure that "tipped employees receive their full pay."
Regional Solicitor of Labor Samantha N. Thomas iterated the significance of the legal action, telling, per CBS News Pittsburgh, that "This legal action recovers the workers' hard-earned wages and sends a message to other restaurant employers that violations come at a cost," signaling that the Department of Labor is resolved to applying all available means, including litigation, to prevent employers from depriving workers of their rightfully earned wages. To solidify this stance, Sly Fox Brewing Company will also be required to pay more than $15,000 in penalties as part of the federal government's ongoing enforcement efforts.
