Exposing Tipping Culture
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dmallord
Humble Hobbit
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Trump and Elon discussed wages and Trump chuckled about how Elon and he wouldn't pay overtime as a rule of thumb. National coverage, smart businessmen bragging about ripping off their employees.
Lawsuit: Jeff Ruby restaurants' 'tip-pooling scheme' violates state and federal labor laws
https://www.cincinnati.com/story/ne...oling-scheme-violates-labor-laws/72762959007/
dmallord
Humble Hobbit
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Not if the workers are not receiving the tips... as is obviously evident from the legal issues presented here.
Bluegrass Hospitality Group (BHG), a restaurant chain in Lexington, Kentucky, US, has reached a $9m settlement in a lawsuit accusing the company of wage and tip theft from its employees. The agreement was finalised in early February 2025.
The Lexington Herald-Leader reports that court records indicate the settlement resulted from negotiations between BHG and several past and present employees.
BHG runs well-known dining establishments such as Malone’s, Malone’s Prime Events & Receptions, Drake’s and OBC Kitchen.
https://www.verdictfoodservice.com/news/bhg-wage-theft-settlement/
The Lexington Herald-Leader reports that court records indicate the settlement resulted from negotiations between BHG and several past and present employees.
BHG runs well-known dining establishments such as Malone’s, Malone’s Prime Events & Receptions, Drake’s and OBC Kitchen.
https://www.verdictfoodservice.com/news/bhg-wage-theft-settlement/
WASHINGTON — DC Attorney General Brian L. Schwalb has filed a lawsuit against Talea Ristorante and its owner, Hamza Hadani, alleging they systematically underpaid employees, denied them overtime and sick leave, and retaliated against those who spoke out.
According to the lawsuit, Talea, which opened in Cathedral Heights in June 2024, paid some tipped workers as little as $3.99 per hour—far below D.C.’s minimum wage requirements. Employees allegedly worked up to 70-hour weeks without proper pay, were forced to find their own shift coverage when sick, and were fired if they questioned their wages.
https://www.wusa9.com/article/news/...ation/65-a955dbd9-16a6-4b59-8b1e-a74052f862a8
According to the lawsuit, Talea, which opened in Cathedral Heights in June 2024, paid some tipped workers as little as $3.99 per hour—far below D.C.’s minimum wage requirements. Employees allegedly worked up to 70-hour weeks without proper pay, were forced to find their own shift coverage when sick, and were fired if they questioned their wages.
https://www.wusa9.com/article/news/...ation/65-a955dbd9-16a6-4b59-8b1e-a74052f862a8
Iowa City-based restaurant chain paid its servers only tips, U.S. Department of Labor claims
https://www.thegazette.com/news/iow...ers-only-tips-u-s-department-of-labor-claims/
latesr cheap skate restaurants
A chain of Iowa-based Mexican restaurants is being sued by the federal government for allegedly paying some of its workers only the tips collected from customers.
In a lawsuit filed in U.S. District Court for the Southern District of Iowa, the U.S. Department of Labor is alleging that Rocio Correa-Mata, 33, of Iowa City, as the sole owner and primary manager of the Mexico Lindo Grill & Cantina restaurant chain, violated the Fair Labor Standards Act of 1938.
Mexico Lindo Grill & Cantina has locations in West Branch, Iowa City, and North Liberty.
The department alleges that certain servers at the restaurants were “only paid via direct cash and credit tips from customers” and did not receive the federal minimum wage rate of $7.25 per hour.
The chain also is alleged to have “willfully and repeatedly” paid employees less than the statutory overtime rate of 1.5 times the workers’ regular wages for all hours worked in excess of 40 hours per week.
https://iowacapitaldispatch.com/202...ers-only-tips-u-s-department-of-labor-claims/
Ritzy, NYC-based Italian hospitality company Major Food Group was allegedly shorting dozens of employees in Boston on their paychecks, starting from when its restaurant Contessa opened three years ago, according to a recent settlement agreement.
The restaurant group paid out 68 current and former employees at the company’s glamorous rooftop Boston restaurant after battling claims that management had been mishandling tip money at the hot spot, according to hospitality lawyer Lou Saban, who represented the employees in the arbitration settlement. Eater has also viewed one of the dozens of individual arbitration settlement agreements (with the financial terms redacted).
https://boston.eater.com/2025/5/1/2...ntessa-tips-wages-settlement-agreement-boston
A chain of Iowa-based Mexican restaurants is being sued by the federal government for allegedly paying some of its workers only the tips collected from customers.
In a lawsuit filed in U.S. District Court for the Southern District of Iowa, the U.S. Department of Labor is alleging that Rocio Correa-Mata, 33, of Iowa City, as the sole owner and primary manager of the Mexico Lindo Grill & Cantina restaurant chain, violated the Fair Labor Standards Act of 1938.
Mexico Lindo Grill & Cantina has locations in West Branch, Iowa City, and North Liberty.
The department alleges that certain servers at the restaurants were “only paid via direct cash and credit tips from customers” and did not receive the federal minimum wage rate of $7.25 per hour.
The chain also is alleged to have “willfully and repeatedly” paid employees less than the statutory overtime rate of 1.5 times the workers’ regular wages for all hours worked in excess of 40 hours per week.
https://iowacapitaldispatch.com/202...ers-only-tips-u-s-department-of-labor-claims/
Ritzy, NYC-based Italian hospitality company Major Food Group was allegedly shorting dozens of employees in Boston on their paychecks, starting from when its restaurant Contessa opened three years ago, according to a recent settlement agreement.
The restaurant group paid out 68 current and former employees at the company’s glamorous rooftop Boston restaurant after battling claims that management had been mishandling tip money at the hot spot, according to hospitality lawyer Lou Saban, who represented the employees in the arbitration settlement. Eater has also viewed one of the dozens of individual arbitration settlement agreements (with the financial terms redacted).
https://boston.eater.com/2025/5/1/2...ntessa-tips-wages-settlement-agreement-boston
S.C. restaurant manager accused of enslaving black cook pleads guilty to forced labor
The manager of a South Carolina restaurant has pleaded guilty to forcing a mentally disabled black buffet cook to work unpaid for more than 100 hours a week, according to federal officials.
Bobby Paul Edwards, a 53-year-old white male, admitted he used violence, threats and intimidation tactics to force John Christopher Smith, who is black, to work more than 100 hours a week without pay at Edwards’ Myrtle Beach buffet restaurant J&J Cafeteria.
The United States Department of Justice on Wednesday announced Edwards pleaded guilty to one federal count of forced labor.
In an interview with CNN affiliate WPDE last year, Smith said he started washing dishes and busing tables at J&J Cafeteria at age 12, but the alleged incidents of abuse began when Edwards became manager in 2009. The abuse continued through 2014. Smith is about 40 years old today.
https://www.ajc.com/news/national/r...s-guilty-forced-labor/tc4YUWOp0m3zs2e1XweTGO/
‘It’s ridiculous’: Why some Canadian youth feel ready to tap out of tipping culture
By Aaron Sousa, The Canadian Press
Posted August 23, 2025 8:00 am.
Last Updated August 23, 2025 8:15 am.
EDMONTON — Ren Alva is no stranger to leaving a good tip.
The Edmonton university student believes in tipping service workers for a job well done, even leaving more during the holidays and after special events.
But the 22-year-old from Bahrain was taken aback during a recent visit to a U-pick berry farm, where he and his friends were asked to leave a tip at checkout.
“We did the picking ourselves,” said Alva. “They didn’t have to do anything.
“I don’t know who the money’s going to.”
In a similar fashion, Jacob Burris said he only tips at dine-in restaurants in and around his home in Saint John, N.B., and bases the amount he leaves on the quality of the service.
“Tips should not be given for someone simply doing their job,” the 24-year-old said.
As Canada’s cost of living soars — and restaurant gratuities see a similar increase — Alva and Burris are just two of several Canadian youth who say they’re nearing their tipping point with tipping.
https://toronto.citynews.ca/2025/08...uth-feel-ready-to-tap-out-of-tipping-culture/
Sean Renaud
The West Coast Pop
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I don't know how Canadian law works, in the US there are places where diner staff don't actually make minimum wage. They live off those tips. I'm sure its been mentioned in this thred already but its a holdover from essentially Jim Crow. White folks would be damned if they were gonna pay black people a fair wage for their labor so they came up with a work around. Even if I agreed with the mindset of a hundred fifty plus years ago but today its absolute bullshit. If you can't afford to pay your workers at least minimum if not a living wage you don't deserve to have a business. Its really not any more compliated than that.
I don't know what the deal is on the berry farm but I do know that agriculture jobs are often in a similar situation of not making the minimum and instead being paid by the unit. The closest I've come to picking fruit is there is a local place with some apples, peaches and something else and you can go pick your own fruit and then pay. Oh and I have an orange tree in the yard but both of these situations aren't even double digits at the end of the day and I go when I want to go. So I'm not out there in the middle of the afternoon in 100+ degree whether I'm either there before the sun is fully up or after its starting to set and if its hot outside that's an immediate NOPE.
Also if you can, tip in cash. Sure you're supposed to report tips on your taxes but nobody actually does that stupid shit so its already tax free no need for new laws.
I don't know what the deal is on the berry farm but I do know that agriculture jobs are often in a similar situation of not making the minimum and instead being paid by the unit. The closest I've come to picking fruit is there is a local place with some apples, peaches and something else and you can go pick your own fruit and then pay. Oh and I have an orange tree in the yard but both of these situations aren't even double digits at the end of the day and I go when I want to go. So I'm not out there in the middle of the afternoon in 100+ degree whether I'm either there before the sun is fully up or after its starting to set and if its hot outside that's an immediate NOPE.
Also if you can, tip in cash. Sure you're supposed to report tips on your taxes but nobody actually does that stupid shit so its already tax free no need for new laws.
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