Idaho Falls, Idaho – Mackenzie River Pizza, a local restaurant in Idaho Falls, has been ordered to pay a hefty sum of over $319,000 for engaging in illegal tip sharing, child labor, and violations of overtime work laws. The U.S. Department of Labor announced on Wednesday that the owners of the restaurant, Granite Mountain Restaurants LLC and MRP Idaho Falls LLC, were found guilty of multiple labor law violations related to employee payment, tip distribution, and the hiring of underage workers.
According to a news release issued by the Department of Labor, a U.S. District Court determined that the restaurant owners had unlawfully withheld a portion of the tips earned by servers and bartenders. Additionally, they were found guilty of paying their employees less than the federal minimum wage of $7.25 per hour, by making use of a tip credit system and counting customer tips towards the hourly wage. Furthermore, employees were forced to share their tips with the back-of-the-house staff.
In addition to these violations, the employers also violated federal child labor laws by allowing minors, aged 14 to 15, to work during school hours beyond what is permitted by the Fair Labor Standards Act. The court judgment revealed that a 15-year-old was even engaged in baking activities, which is strictly prohibited for minors.
The restaurant had also faced allegations of retaliation against an employee who had spoken out against these illegal practices. As a result, the judgment ordered the employer to pay $139,981 to 69 workers, which includes the amount owed in tips, unpaid minimum wage and overtime wages, along with an equal amount as damages.
In addition to the monetary penalties, the court also imposed $5,000 in punitive damages and $34,077 in penalties on the restaurant owners. The severity of the judgment serves as a reminder to employers that the Department of Labor is committed to protecting workers and ensuring compliance with labor laws.
When reached for comment, Mackenzie River Pizza’s General Manager, Brendon Finn, stated that they are currently working on an “action plan” that will address the issues raised. He mentioned that the plan will be shared with the team within the next three weeks.
This case highlights the detrimental impact of unlawful practices by restaurant employers, not only on employees but also on the larger restaurant community, which faces unfair competition due to prohibited labor practices such as wage theft and retaliation against employees exercising their rights. San Francisco Regional Solicitor of Labor, Marc Pilotin, emphasized the importance of bringing such bad actors into compliance to protect workers and maintain a level playing field for all employers.
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