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An investigation and five-day trial found that the owners of Empire Diner in Lansdowne required their servers to turn over 10 to 15 percent of their total tips received on any given shift to pay the bussers’ wages, the Department of Labor said.
On Aug. 18, a US District Court judge for the Eastern District of Pennsylvania ordered Musluoglu Inc., owner Ihsan Gunaydin, and manager Engin Gunaydin to pay $1.35 million to 107 servers and kitchen workers from January 2015 to January 2018.
The department also found the diner previously violated minimum wage, overtime, and recordkeeping provisions of the Fair Labor Standards Act.
They were accused of paying straight time to certain kitchen employees for all hours worked, including hours over 40 in a work week.
Specifically, the court agreed the restaurant and the Gunaydins were not entitled to claim employee tips as a credit towards their minimum wage obligation.
“Tipped workers in the food services industry rely on their hard-earned tips to make ends meet. By diverting a portion of these tips, restaurant employers violate federal labor laws and harm workers and their families,” said Jessica Looman, principal deputy wage and hour administrator.
“This significant and successful litigation demonstrates the Department of Labor’s commitment to protect the nation’s essential workers.”
The owners also interfered with the investigation by telling employees to lie about the business’ unlawful pay practices.
In addition to the back wages and liquidated damages, the diner was given a $47,620 civil money penalty due to the "willful nature of the violations."
“This legal action recovers the workers’ hard-earned wages and sends a strong message to other restaurant employers that violations come at a high cost,” said Sema Nanda, solicitor of labor.
“The U.S. Department of Labor is prepared to use every tool available, including litigation, to prevent employers from depriving workers of their wages.”
Anyone who may have been affected by these incidents is asked to call the Department of Labor at 215-597-4950.
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