The owners of Amy’s Baking Company could find themselves in legal trouble after it was revealed that they keep tips given to servers.
The owners, Samy and Amy Bouzaglo, admitted on an episode of “Kitchen nightmares” that they pay their servers between $8 and $14 per hour instead of using the standard tip-based pay system used in most restaurants.
In an email, a representative from the Department of Labor said the Bouzaglos could be in violation of the law.
“DOL regulations make clear that under the Fair Labor Standards Act tips are the property of the employee whether or not the employer has taken a tip credit,” said Deanne Amaden in an email. “An employer is prohibited from using an employee’s tips, whether or not it has taken a tip credit, for any reason other than as a partial credit against its minimum wage obligation to the employee or in furtherance of a valid tip pool (i.e., a pool including only customarily and regularly tipped employees).”
Amaden said the department would need more information about the situation to make a clear decision. She would not comment on if her agency is investigating the Bouzaglos.
Amy’s Baking Company came under fire this week after numerous postings on its Facebook page caught the eye of the Internet. The Bouzaglos have since claimed their social media sites were hacked and have filed a complaint with police.
The restaurant is hosting a reopening Tuesday night.
- Workers comp: Signs your co-worker could be a fraud
- Who's the real founder of America's pastime?
- Epidemic rising? What you need to know about Alzheimer's in Arizona
- 5 unforgettable Wooden Award winners
- Family and hard work are keys to success of modern dairy farmers
- Genetic testing could hold answers for colon cancer survival
- Cold beers and baseball: A beer lover's guide to Spring Training
- Telecommuting: 5 tips to make it work for employers and employees
- See how top CFOs feel about economic growth in the Valley
- Migraine myths that keep patients from effective treatments
- Here’s why Gaydos went tankless with his water heater
- Bocce ball and basketball: How you can help Arizona's Special Olympics athletes
- Tips on building the best wine room in Arizona
- Avoid the nightmare: 6 tips to choose a great contractor
- Breast cancer: Improved testing and treatments means more survivors
- Failed back surgery: New hope for patients living in pain
- Ticking time bombs: Telltale signs your water heater is about to explode
- Reading glasses could be a thing of the past
- 6 cool ways teachers are using technology in the classroom
- Emerging tech jobs in Phoenix and how to get one in 2017
- 4 top treatments athletes use for pain
- Emergency! What to do when bathrooms flood
- Arizona kids in crisis: How you can help
- New treatment offers hope for migraine sufferers
- 11 stadiums to watch your favorite football team
- Shopping for a TV? Best models for 2016
- Avoid this holiday plumbing disaster in your home
- 7 tips to avoid holiday weight gain
- New treatments mean better prostate cancer survival rates
- 5 of the scariest things found in drains