Restaurants & Bars

Pittsburgh Bars Fined For Witholding Worker Tips

The owner of two Pittsburgh taverns violated federal law in withholding employee tips.

PITTSBURGH, PA — The owner of two Pittsburgh taverns must pay $184,000 in back wages, damages and penalties after a National Labor Relations Board investigation found they unlawfully withheld employee tips.

The NLRB Wage and Hour Division found Sly Fox Brewing Company, with locations Downtown and on the South Side, unlawfully kept a portion of the tips earned by workers, allowing managers to participate in the restaurant’s tip pool. That's a violation of the Fair Labor Standards Act.

Federal law prohibits 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.

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“Restaurant workers often make low wages and depend on every dollar earned, including tips, to help support themselves and their families,” John Dumont, NLRB wage and hour Pittsburgh district director, said in a statement. “Restaurant employers must ensure that tipped employees receive their full pay in compliance with the federal law.”

The NLRB recovered $84,710 in owed wages and assessed the Pottstown-based Sly Fox $84,710 in liquidated damages. The company also was fined $15,435 for willful violations of the Fair Labor Standards Act.

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