Florida restaurant management shorted pay, took servers’ tip money, owed workers $262,000

David J. Neal
·2 min read
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Management at a Fort Myers restaurant didn’t pay overtime when they should have and made servers tip not only sushi chefs, but owners and managers, a U.S. Department of Labor investigation found.

And, of those tips taken from servers, GinZa Japanese Restaurant management “could not account for $22,000,” Labor said.

The federal department said the restaurant paid $262,322 in back wages and liquidated damages. That money went to 75 workers, an average of $3,497.63 per worker.

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State records say this GinZa, 4429 Cleveland Ave., is operated by Ginza Fort Myers, whose president is Chang Ying Huang. Restaurant management didn’t return a message left by a Miami Herald reporter asking for comment on what Labor’s Wage and Hour Division investigators found.

Those investigators found that GinZa management ran afoul of the Fair Labor Standards Act (FLSA) by:

▪ Making servers “tip sushi chefs, owners, and managers based on the servers’ total sales.”

▪ Couldn’t show the aforementioned $22,000 “were paid to servers or any other employee.”

▪ Didn’t pay a proper regular rate and overtime to employees who toiled in two different roles.

“Tips are the property of the employees who earn them. No employer has the right to keep any tips unless they are given directly to the manager who directly serves a customer,” explained Wage and Hour Division District Director Nicolas Ratmiroff. “This case shows that when an employer handles tip pools improperly, they may no longer apply a tip credit which can lead to an employer owing employees significant back wages and damages.”

The Wage and Hour complaint section of Labor’s website contains information on how to file a complaint if you believe your employer has violated FLSA or other labor laws. Miami’s Wage and Hour Division office can be reached at 305-598-6607. The national helpline is 866-4US-WAGE (487-9243).