The Department of Labor recovered $253K for 19 restaurant workers that Crackin’ Crab withheld tips and wages at two franchise locations.
Employers kept parts of workers’ tips, leading to wage violations
ALBUQUERQUE, NM (STL.News) The Department of Labor released the following information:
Employers name: X.M. Investment LLC and Beemer Investments LLC, both operating as Crackin’ Crab
Investigation sites: 4959 Pan American Freeway NE, Suite C, Albuquerque, NM 87114 – 2100 Louisiana Blvd. N.E., Suite 413, Albuquerque, NM 87114
Investigation findings: The U.S. Department of Labor’s Wage and Hour Division found that employers violated federal law by keeping part of the employees’ tips. By doing so, the employer invalidated their tip credit and failed to pay the required minimum wage. The employer also violated the overtime provisions by paying time and one-half the regular pay rate after 80 hours in a pay period instead of time and one-half of the employee’s hourly wages for hours over 40 in a workweek.
Back wages recovered: $126,818 in owed wages and $126,818 in liquidated damages to 19 workers.
Penalties: An assessment of $616 in civil money penalties for withholding employee tips.
Quote: “Restaurant workers depend on their tips and overtime pay to support themselves and their families,” said Wage and Hour District Director Evelyn Ortiz in Albuquerque, New Mexico. “The employer cannot keep tips under any circumstances. The U.S. Department of Labor remains committed to protecting our nation’s workers.”
Background: Established in 2015, Crackin’ Crab operates casual dining seafood restaurants at four locations in New Mexico, Albuquerque, and Sante Fe, as well as two locations in Amarillo, Texas.
SOURCE: DOL
