Sandy restaurant illegally kept $17K in tips: Labor officials

PORTLAND, Ore. (KOIN) -- A Sandy restaurant was fined for allegedly keeping more than $17,000 in tips made to staff and using the money to pay its own business expenses.

Smoky Hearth Restaurant Bar and Grill at 16607 Champion Way was the subject of the labor investigation, the U.S. Department of Labor confirmed Thursday.

Officials said the eatery violated the Fair Labor Standards Act by pocketing thousands meant for its workers and then using the funds to pay employees' standard wages as well as "other business expenses."

In total, investigators recovered $17,087 in owed wages for eight employees. The restaurant was also handed a $1,257 fine "to address the willful nature of the violations," the Department of Labor said.

In a prepared statement, Carrie Aguilar, the department's Wage and Hour Division director for the Portland area, said they were "determined" to make sure employers don't keep money that isn't theirs.

“Customers’ tips to restaurant staff belong to those who earned them, such as servers, bartenders and other front-line workers. Any attempt by an employer to keep these tips is a labor law violation," Aguilar said. “The U.S. Department of Labor is determined to protect workers’ rights to keep all their earnings, including tips, and prevent employers from paying wages with money that does not belong to them.”

KOIN 6 News has reached out to Smoky Hearth for comment.