US Department of Labor recovers $184K in back wages, damages, penalties after wage investigation finds Pittsburgh restaurant unlawfully withheld tips

Employer:      

Sly Fox Brewing Company, 331 Circle of Progress Drive, Pottstown, Pennsylvania                           

Investigation sites:                  

Sly Fox Pittsburgh Taphouse at the Point, 300 Liberty Ave., Pittsburgh

Sly Fox Pittsburgh Brewery at the Highline, 46 S. 4th St., Pittsburgh 

Investigation findings: 

The U.S. Department of Labor’s Wage and Hour Division found Sly Fox Brewing Company unlawfully kept a portion of the tips earned by workers, allowing managers to participate in the restaurant’s tip pool, a violation of the Fair Labor Standards Act. Federal law forbids employers or managers from keeping employees’ tips for any purpose. As a result, the tip credit claimed by the employer became invalid and the employer was required to return the tips to employees and pay them the full federal minimum wage.

Back wages and damages recovered:          

$84,710 in owed wages/$84,710 in liquidated damages

Civil money penalties accessed:                   

$15,435 for willful violations of the FLSA.

Quote:

“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 Pittsburgh, Pennsylvania. “Restaurant employers must ensure that tipped employees receive their full pay, in compliance with the federal law.” 

“This legal action recovers the workers’ hard-earned wages and sends a message to other restaurant employers that violations come at a cost,​” said Philadelphia Regional Solicitor of Labor Samantha N. Thomas. “The U.S. Department of Labor is prepared to use every tool available, including litigation, to prevent employers from depriving workers of their wages.”

Background:  

Sly Fox Brewing Company has operated in Pennsylvania since 1995. In addition to the two Pittsburgh locations noted above, they have pubs in Phoenixville, PA, Wyomissing, PA, Pottstown, PA, and Malvern, PA.

Learn more about the Wage and Hour Division, including a search tool to use if you think you may be owed back wages collected by the division. Workers and employers can contact the division confidentially at its toll-free number, 1-866-4-US-WAGE (487-9243). The division protects workers regardless of immigration status and can communicate with workers in more than 200 languages.