SADDLE BROOK, N.J. — More than $40,000 in tips is at the center of a lawsuit alleging that a Houlihan's owner pocketed tip money belonging to staff, northjersey.com reports.
A company that runs 17 Houlihan's restaurants was sued by employees claiming that it pocketed tip money at restaurants it runs in New York and New Jersey. A.C.E. Restaurant Group required servers and bartenders to contribute a percentage of their tips to a tip pool, according to northjersey.com.
The pool also distributed wages of non-tipped employees, such as custodians and kitchen workers, and management would keep a portion of the tips collected — allegedly violating the Fair Labor Standards Act.
According to reports, the Department of Labor said it seeks reimbursement on for unpaid wages, tips and legal costs on behalf of 1,430 employees.
See full story at northjersey.com
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