Federal court orders Portland restaurants to pay $540K to employees after illegally splitting tips

Summary:

Pizzicato Inc., a Portland-based restaurant chain, has agreed to pay $540,202 in back wages and penalties to 367 employees as a result of a consent judgment in the US District Court for the District of Oregon. The judgment, reached by the US Department of Labor's Wage and Hour Division, was in response to an investigation that found the company had illegally withheld tips from employees and hired a minor to drive a motor vehicle. The company will permanently be barred from violating the Fair Labor Standards Act and will pay back wages and liquidated damages. The Wage and Hour Division emphasized the importance of ensuring that employees receive all money earned, including tips paid by customers.