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Workers to split $600,000 after SC tip pool ruled illegal

(MGN)
Published: May. 15, 2022 at 3:26 PM EDT
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CHARLESTON, S.C. (AP) - The U.S. Department of Labor has ordered a restaurant in South Carolina to pay more than $600,000 to nearly 100 workers who were forced to share their tips.

The agency says the tip pool at 167 Raw in Charleston was an illegal arrangement that violated the minimum wage laws.

The restaurant owners claimed a credit that let them pay tipped workers $2.13 an hour with the understanding the pooled tops would bring everyone’s pay up to at least the federal minimum wage of $7.25 an hour.

But the Labor Department says taking the tips from waiters made the tip credit invalid and the restaurant was required to pay the higher rate.

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