A Texas food chain violated a year-old law by reallocating $230,353 in tips from servers to managers, taking away earned wages from more than 270 employees.
Essential workers struggling through the pandemic face another hazard of hard times: employers who steal their wages. An analysis by the Center for Public Integrity found companies have little incentive to follow the law. violated a year-old law by reallocating $230,353 in tips from servers to managers, taking away earned wages from more than 270 employees – the U.S. Department of Labor announced Monday.
Several Black's Barbecue locations in Austin, New Braunfels, Lockhart and San Marcos were targeted by the Labor Department's Wage and Hour Division investigation resulting from a 2019 audit and a federal labor rule change making it illegal to share employee-earned tips with managerial staff. Kent Black, grandson of original Black's Barbecue pit master Edgar Black Sr. and current member of the Black's ownership group, told the Statesman, part of the USA TODAY Network, Tuesdaythe company outsourced its payroll and was unaware of the rule revision that mangers should not take tips.
"We're barbecue experts, we're not payroll experts," Black said."We weren't closely following that, and apparently our payroll company did not pick up on that."“Food service industry employers must know that tips are the property of tipped employees who earn them, plain and simple,” said Nicole Sellers, Wage and Hour Division district director in Austin. “Workers and their families depend on their rightfully earned wages and benefits.
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