A Philadelphia diner has been ordered to pay over a million dollars in labor law violations after using a portion of server's tips.
The Department of Labor ruled that Empire diner would have to pay back wages.
Empire diner told employees to lie about the company's illegal practices and ordered server to give 10% to 15% of their total tips to pay bussers' wages.
The diner was found to have violated minimum wage, overtime and record-keeping provisions of the fair labor standards act.
Food service workers rely on their tips to make ends meet. The principal deputy wage and hour administrator said that restaurant employers violated federal labor laws by redirecting a portion of the tips.
There was a fine imposed on Ihsan Gunaydin and his manager. The restaurant will have to pay a civil penalty for violating the law.
Empire didn't reply immediately to Insider's request for comment. The restaurant said it would appeal the decision.
The department argued that these practices could ruin a restaurant's reputation in a tight labor market.
Workers at a Texas BBQ restaurant were ordered to pay $230,000 in back wages after their tips were shared with managers.
Today's changing job market makes it more difficult to retain and recruit workers.
Employers who take advantage of workers by violating their legal rights will find it difficult to recruit and retain the people they need to fill jobs.
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