A Taco Chain Made Servers Share Their Tips With Kitchen Staff and Other Workers, the Labor Department Says. It Could Be Ordered To Pay Staff $823,000.

The Department of Labor (DOL) has filed a lawsuit against three Barrio Tacos locations in Michigan, alleging that they enforced an "invalid" tip pool system where staff had to share their tips with non-tipped employees, including kitchen staff. This practice made the restaurants ineligible for a tip credit, resulting in servers' and bartenders' wages falling below the federal minimum wage. The lawsuit seeks $823,000 in back wages and damages, covering the period from October 2020 to October 2022, and also imposes fines on the restaurants' owner, Jacob Hawley.