Texas Restaurant Ordered to Pay Workers $81,000 After Tip Violations

Working in a restaurant isn't easy. A Texas sushi restaurant has been ordered to pay more than $81,000 to workers after a federal investigation found illegal tip-sharing and overtime violations. The case is a reminder that those tips sitting on your restaurant table are legally protected wages for the employees who earned them.

My first job was a host at a restaurant making just over minimum wage. It was tough at times, but it taught me a lot about people and how to handle difficult situations. It also made me want to start making tips as I saw servers walking out with cash daily. Although tips don't always work the way you think.

What Happened at the San Antonio Restaurant?

According to KVUE, The U.S. Department of Labor recovered more than $81,000 for 33 Sushi Haya workers after investigators found tip and overtime violations. The sad part is the violations showed the restaurant was sharing employee tips with company executives. Federal law prohibits employers and managers from keeping employees' tips.

The U.S. Department of Labor's Wage and Hour Division investigated Hongwei Sushi LLC, which operates as Sushi Haya at 226 W. Bitters Road in San Antonio, Texas.

READ MORE: Texas Ranked 6th Worst State for Tipping in U.S.

Workers Were Also Not Properly Paid Overtime

The violations invalidated the restaurant's tip credit, requiring the employer to return the tips and pay workers the full federal minimum wage, according to the Labor Department. Investigators also found some employees were paid a flat salary without receiving overtime pay when they worked more than 40 hours a week.

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How Much Did the Restaurant Have to Pay?

The department recovered $81,308 in back wages for 33 employees and gave the business a $1,980 civil penalty.

In Texas if workers or employees have questions about wage laws they are able to contact the Wage and Hour Division at 866-4US-WAGE.