According to news reports, the United States Labor Department is suing the A.C.E. Restaurant Group Inc. for allegedly skimming the tips and wages of their former and current employees at 17 different Houlihan’s restaurant locations.
Reports allege the company participated in the following acts:
- Forced bartenders and waiters/waitresses to put a portion of their tips into a “tip pool” in order to pay custodial and kitchen employees
- Would not grant employees, who worked at multiple locations, overtime pay even when they worked over 40 hours in a single work-week
- Encouraged employees to work off the clock and receive payment in the form of tips
- Acquired money from employees’ paychecks if the workers consumed meals during their breaks in addition to a required payment for the meal. (Unfortunately, this made some workers earn less than minimum wage.)
The Wage and Hour Division Regional Administrator stated that the company’s practices did not allow these workers to collect the wages and tips they rightfully earned. Currently, many of the Houlihan’s locations are under careful investigation.
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