☷Federal court orders Portland restaurants to pay $540K to employees after illegally splitting tips
U.S. Department of Labor ( By Press Release office)
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A federal court has ordered Portland restaurants to pay $540K to their employees after they were caught illegally splitting tips . Pizzicato Inc . , located at 121 South Bancroft St . in Portland , Oregon , was found to have allowed managers to participate in tip pools , which is against federal law . The investigation also revealed that the restaurant hired a 17 - year - old minor to drive , violating labor standards . As a result , Pizzicato owners Mark and Tracy Frankel and company officer John - Felix Rippel have been permanently banned from violating labor laws and ordered to pay $540 , 202 in back wages and damages to 367 employees . The court also imposed $29 , 797 in penalties on the restaurant . The U . S . Department of Labor is committed to ensuring that workers receive their rightful wages and tips , according to Regional Solicitor of Labor Marc Pilotin . Wage theft is a major concern for restaurant industry workers , who are among the most vulnerable in the community , added Wage and Hour Division District Director Katherine Walum . For more information or assistance , employees and employers can contact the agency ' s toll - free helpline at 866 - 4US - WAGE ( 487 - 9243 ) or download the Timesheet App for accurate tracking of hours and pay .
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