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Texas BBQ
BBQ spot Hard Eight were told to repay nearly $900,000 in tips and overtime.AP
  • Over the course of two years, Hard Eight failed to pay tips and overtime to employees.

  • The news was reported by the DoL.

  • The chain changed its practices after learning about the rules.

The US Department of Labor said on Thursday that a Texas BBQ chain owed nearly $900,000 in overtime and tips.

The Hard Eight chain failed to distribute over a million dollars to its employees.

The company didn't pay tipped employees their full tips. The managers who weren't paid for their correct hours and only paid a half rate for overtime were given the withholding tips.

The wage and hour district director said that the managers in the tip pool were in violation of the law. The employer denied tipped workers some of their tips and managers proper overtime wages.

The Wages and Fair Standards Act forbids employers, managers, and supervisors from withholding tips from their workers.

The Department of Labor and Hard Eight did not respond to Insider's requests for comment outside of regular working hours.

According to the report, the restaurant's credibility would be harmed by an error that cost them over $1,000 in tips and overtime.

As businesses struggle to find people to do the work needed to keep operating, employers would be wise to avoid violations or risk finding it even more difficult to retain and recruit workers who can choose to seek jobs where they will receive all of their rightful wages.

The company was made aware of the investigation in 2020 and its actions related to a misunderstanding of legislation, according to the COO of Hard Eight.

In an email to the Fort Worth Star-Telegram, the executive director of the restaurant said that the floor managers were included in the tip sharing program.

During a Department of Labor review, we learned about the new rules and immediately changed our practices. All hourly employees and former employees were compensated. She said that they gave their floor managers a wage increase.

The original article is on Business Insider.

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