ROANOKE, Texas (CBSDFW.COM) – The Department of Labor said a Roanoke barbeque restaurant owes $867,572 in back wages to 910 employes after investigators found that it was allegedly not paying overtime and including managers in its tip pool.
According to the Wage and Hour Division, the Roanoke Hard Eight BBQ restaurant failed to pay tipped employees fairly by including managers in the tip pool. The Fair Labor Standards Act does not allow employers or their managers to keep tips that workers receive for any purpose.
The restaurant also did not pay the time-and-a-half overtime wage to hourly managers who worked over 40 hours in a work week.
Altogether, a spokesperson said that 910 workers were determined to be owed back wages in tips and overtime. Wage and Hour District Director Jesus A. Valdez in Dallas said:
“Roanoke Hard Eight violated the law by including managers in their tip pool. By doing so, the employer denied tipped workers some of their tips and managers proper overtime wages. As businesses struggle to find people to do the work needed to keep operating, employers would be wise to avoid violations or risk finding it even more difficult to retain and recruit workers who can choose to seek jobs where they will receive all of their rightful wages.”
Hard Eight disputed the claims and said that it had not violated any laws:
“We have been made aware of a news article sharing incorrect information from a recent Department of Labor audit. We were indeed audited by the Department of Labor, however, our overtime wages were being paid correctly at all Hard Eight BBQ Locations. Due to our unique restaurant setup, we strongly believe our managers are hands-on in the guest experience and were also deserving of a percentage of the tip pool, along with hourly employees. At no time has ownership or executives taken part in the tip share, and hourly employees and managers were given 100% of tips paid in by customers. Our family is dedicated to taking care of both our employees and customers, and are saddened this information was shared incorrectly, and without complete explanation.”