CINDY ELLEN RUSSELL / JUNE 21
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The parent company of Tsukiji Fish Market restaurant at Ala Moana Center has agreed to pay more than $57,000 in tips and unpaid wages to 68 employees.
Paradise Inn Hawaii LLC was found, by the U.S. Department of Labor, to have unlawfully required servers to share tips with nontipped employees, while still paying the servers less than the full minimum wage.
"Employers cannot take a lawful reduction or credit against their obligation to pay the federal minimum wage to servers while unlawfully requiring them to share their tips with traditionally nontipped employees such as assistant managers and dishwashers," said Terence Trotter, the division’s district director in Hawaii, in a statement Monday.
In most states, tipped workers may be paid a lower wage if, when tips are included, the wage equals at least the full minimum wage.
Servers at Tsukiji, however, were required to contribute their tips to what the Labor Department calls an illegal tip pool for all of the restaurant’s workers. That invalidates the employer’s ability to claim a tip credit, the department ruled.
Labor Department Wage and Hour Division investigators found that the 68 employees are owed $48,029 in tips and another $9,538 in back pay.