ROANOKE, Texas — A North Texas grill restaurant withheld about $867,000 in tips and overtime from more than 900 employees, according to the U.S. Department of Labor.
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An investigation by the department’s Pay and Hour Division found that the Roanoke, Texas-based Hard Eight BBQ was not adequately compensating its employees who earned tips. The investigation also found that hourly managers were not being paid adequate overtime wages, which is usually an hourly rate of an hour and a half, the Fort Worth Star-Telegram reported.
According to WFAA, 910 employees were deprived of a total of $867,572, but Hard Eight fully reconciled the discrepancies by August 2021.
The Fair Labor Standards Act prohibits an employer — or its managers or supervisors — from withholding for any purpose tips given to the company’s workers, “regardless of whether the employer claims a tip credit or not,” the TV network reported.
Meanwhile, Dallas Wage and Hour district director Jesus A. Valdez confirmed to the WFAA that Roanoke Hard Eight broke the law by including managers in its tip pool.
“By doing so, the employer denied the tips some of their tips and the managers the reasonable wages for overtime,” Valdez said. “As companies struggle to find employees to do the work needed to keep the business running, employers should avoid violating or risk finding it even harder to retain and hire workers who can choose to seek jobs, at which they receive all their rightful wages.”
The restaurant’s chief executive, Katie Gooch, said in a statement emailed to Star-Telegram that Hard Eight BBQ fixed the issue in August 2021, noting that the changes were made after management became aware of a change in the labor laws in 2019.
“At that time, our floor managers, who are deeply involved with the hands-on experience of guests, were enrolled in our tips-sharing program,” Gooch explained in the emailed statement.
“We learned of the new rules during a Department of Labor review and changed our practices IMMEDIATELY. We have compensated ALL affected hourly workers and ex-employees. We also gave our floor managers a raise.”
The restaurant also posted a video message on Facebook addressing the situation, Star-Telegram reported.
The Department of Labor confirmed Hard Eight BBQ to be 100% compliant after paying the back wages and tips to its employees, WFAA reported.
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