Pennsylvania restaurant ordered to pay $184,000 for withholding tips

PITTSBURGH, Pa. (WHTM) - A Pennsylvania restaurant was ordered to pay $184,000 in back wages, damages, and penalties after an investigation found they withheld tips.

The U.S. Department of Labor says Sly Fox Brewing Company in Pittsburgh "unlawfully kept a portion of the tips earned by workers, allowing managers to participate in the restaurant’s tip pool."

Allowing managers to participate in the tip pool is a violation of the Fair Labor Standards Act.

The Department of Labor says the investigation focused on Sly Fox Pittsburgh Taphouse and Sly Fox Pittsburgh Brewery. The company also operates pubs in Berks, Montgomery, and Chester counties.

The restaurant was ordered to pay $84,710 in owed wages, pay civil penalties of $15,435, and pay $84,710 in liquidated damages.

“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.”