News & Announcements

Kauai Restaurant pays nearly $60,000 to Servers to resolve Tip Pool Issue

Published Thursday, August 28, 2014 8:12 pm



Kauai's Bull Shed restaurant, operated by Castle Resorts and Hotels Inc., has resolved a wage and hour dispute with seventeen tipped servers on staff.  The issue arose when a Department of Labor investigation revealed that the restaurant had included non-tipped kitchen staff in a tip pool, and reduced the servers' hourly rate below minimum wage by taking a tip credit.  According to Terence Trotter, the Wage and Hour division's district director in Hawaii, "Employers cannot take a credit against their minimum wage obligation to tipped staff when they required a portion of those tips to be shared with traditionally non-tipped staff such as kitchen employees."  To correct this issue, the restaurant returned $55,674 in tips and $2,959 in minimum wages to the affected servers.

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