Austin restaurant Easy Tiger investigated by Department of Labor, workers allege wage theft
Popular Austin restaurant Easy Tiger faced backlash for allegedly withholding tips from employees.
AUSTIN (KXAN) --- Popular Austin restaurant Easy Tiger is in hot water for allegedly withholding tips from employees.
The situation prompted at least one employee to file a report with the Wage and Hour Division of the United States Department of Labor (DOL). That person alleged to KXAN that hourly managers and back of house staff received tips.
The DOL confirmed that it's investigating the business, but couldn't provide details.
KXAN reached out to Easy Tiger but have not heard back yet. They did, however, respond to our partners at the Austin Business Journal.
They said the tip pool at one location mistakenly included ineligible back-of-house staff. The restaurant said it fixed the issue and is conducting an internal review at other locations.
'This cannot be real'
For six years, Kandace Medina worked at the restaurant as a lead server.
Medina said she and others weren't always given the tips they earned.
"Seeing your paycheck and you're like, 'How did I make $200 in tips that day and now this is $36?' " Medina said. "This cannot be real."
Medina said they transitioned into tip sharing at one point during her time there.
"Became everyone getting a tip share regardless of what they were doing."
Kandace Medina
Ultimately, Medina said workers rely on their tips and not having that money hurts people's livelihoods.
"People had kids. We all fell behind," Medina said. "People are having to get other jobs. It was really horrible."
'Tips belong to employees'
David Langenfeld, an attorney specializing in labor and employment law, said tips can’t be kept from an employee for any reason.
"The law used to be that if an employer paid at least the federal minimum wage of $7.25 an hour, they could keep the tips," Langenfeld said. "But the law changed, I believe it was in 2020."
Langenfeld said even if employers pay the full minimum wage, tips still belong to the employees.
If an employee is in this situation, Langenfeld recommended seeing an attorney or filing a complaint with the DOL.
"If they find that there's a violation, they can try to get that money for the employees," Langenfeld said. "Ultimately, the employer can say, 'No, I'm not going to pay.' The Department of Labor then has to file a lawsuit."
With more restaurants opening around Austin, Langenfeld said he's seen an increase in people coming to him about these kinds of tip issues.
"It's a huge problem in the service industry everywhere," Langenfeld said. "Austin is kind of a destination town - so many bars and restaurants and entertainment. It's a big problem."