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The Wage and Hour Division's investigation revealed that managers at Sly Fox’s Pittsburgh Taphouse at the Point and Pittsburgh Brewery at the Highline were allowed to participate in the restaurant’s tip pool—an action prohibited under the Fair Labor Standards Act (FLSA). Federal law bans employers or managers from keeping tips for any reason, and such violations nullify an employer’s ability to claim tip credits, requiring them to pay employees the full federal minimum wage.
In total, the company was ordered to pay $84,710 in back wages, an equal amount in liquidated damages, and $15,435 in civil penalties for willful violations of the FLSA, according to the release.
“Restaurant workers often make low wages and depend on every dollar earned, including tips, to help support themselves and their families,” said Wage and Hour District Director John DuMont in Pittsburgh. “Restaurant employers must ensure that tipped employees receive their full pay, in compliance with the federal law.”
Philadelphia Regional Solicitor of Labor Samantha N. Thomas emphasized that the ruling serves as a warning to other businesses. “This legal action recovers the workers’ hard-earned wages and sends a message to other restaurant employers that violations come at a cost. The U.S. Department of Labor is prepared to use every tool available, including litigation, to prevent employers from depriving workers of their wages.”
Sly Fox Brewing Company, which was founded in Pennsylvania in 1995, operates several locations, including pubs in Phoenixville, Wyomissing, Pottstown, and Malvern, as well as the two Pittsburgh locations involved in the investigation.
The Department of Labor reminds workers that they can search for owed wages or report concerns confidentially by contacting 1-866-4-US-WAGE (487-9243).
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