Posted on 26-Nov-07 by The Timekeeper

According to this article from The Daily News of Galveston County, a local eatery, Salsa’s Mexican Restaurant, has been for the second time in less than three years found to be in violation of federal labor laws and ordered to pay back wages.

This time around, it was yet another case of “tip pooling” gone wrong. Tip pools are legal under certain conditions, but here because of the way their tips were pooled, workers’ compensation was sometimes less than the federal minimum wage. And that’s not allowed.

So, Salsa’s found themselves paying $109,722 in back wages to their wait staff. A violation back in 2005 having to do with deductions for uniforms and a failure to pay proper overtime cost the company $81,634.

Sounds to me as though Salsa’s could use a good wage and hour audit and compliance plan.

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