U.S. Department of Labor Investigation Results in Pennsylvania Country Club Paying $105,686 in Back Wages and Damages

INDIANA, PA – Indiana Country Club – based in Indiana, Pennsylvania – will pay $52,843 in back wages and an equal amount in liquidated damages, following a U.S. Department of Labor Wage and Hour Division (WHD) investigation that found minimum wage violations of the Fair Labor Standards Act (FLSA).

WHD investigators found that Indiana Country Club retained a portion of the tips earned by servers and bartenders yet failed to contribute those amounts to a valid tip pool, resulting in the employer paying employees less than the federal minimum wage. Due to the violation, the employer cannot claim a credit toward its minimum wage obligations for tips earned by workers, and must pay the full minimum wage to the affected employees.

"Although the employer claimed the tips they retained were service charges, our investigation determined they were, in fact, tips that belonged to the employees," said Wage and Hour Division District Office Director John DuMont, in Pittsburgh, Pennsylvania. "The Wage and Hour Division offers many resources to ensure employees are aware of their rights and to help employers comply with the law. We encourage all employers to make use of the many tools we offer to be sure that they understand their responsibilities. Violations like those found in this investigation can be avoided."

The FLSA requires that covered, nonexempt employees be paid at least the minimum wage of $7.25 per hour for all hours worked, plus time-and-one-half their regular rates, including commissions, non-discretionary bonuses, and incentive pay, for hours worked beyond 40 per week. Employers also must maintain accurate time and payroll records.

WHD is committed to providing employers with the tools they need to assist them in fulfilling their obligation to understand and comply with the variety of laws the Division enforces. Employers who discover overtime or minimum wage violations may self-report and resolve those violations without litigation through the PAID program.

For more information about the FLSA and other federal wage laws, call the Division's toll-free helpline at 866-4US-WAGE (487-9243). Information also is available at http://www.dol.gov/whd.

The mission of WHD is to promote and achieve compliance with labor standards to protect and enhance the welfare of the Nation's workforce. WHD enforces Federal minimum wage, overtime pay, recordkeeping, and child labor requirements of the Fair Labor Standards Act. WHD also enforces the Migrant and Seasonal Agricultural Worker Protection Act, the Employee Polygraph Protection Act, the Family and Medical Leave Act, wage garnishment provisions of the Consumer Credit Protection Act, and a number of employment standards and worker protections as provided in several immigration related statutes. Additionally, WHD administers and enforces the prevailing wage requirements of the Davis Bacon Act and the Service Contract Act and other statutes applicable to Federal contracts for construction and for the provision of goods and services.