Roy’s returns tips to servers after illegal policy surfaces

Six Roy’s restaurants, including Roy’s Waikoloa Bar &Grill, are returning money to servers after the U.S. Department of Labor found the chain illegally required the servers to share their tips with the kitchen help.

Roy’s Holdings Inc. agreed to pay $225,000 in tips and back wages to 326 servers following a Department of Labor investigation that dates to August 2011. About 40 servers who worked at the Waikoloa restaurant will be reimbursed, said Terence Trotter, district director for the department’s Wage and Hour Division in Honolulu.

The Department of Labor determined the wage violation was not willful — meaning the restaurants did not understand they had violated the law, Trotter said.

“They took affirmative action in a timely manner and developed a compliance action plan,” Trotter said.

Read the Full Article

Members help make our journalism possible. Become a Restaurant Business member today and unlock exclusive benefits, including unlimited access to all of our content. Sign up here.

Multimedia

Exclusive Content

Food

Nando's Americanizes its menu a bit as U.S. expansion continues

Behind the Menu: Favorites like mac and cheese, bowls and salads join the fast casual’s Afro-Portuguese-rooted dishes, including the signature peri-peri chicken.

Financing

The consumer is cutting back, but not everywhere

The Bottom Line: Early earnings from major restaurant chains suggest the consumer has taken a distinct turn for the worse so far in 2024.

Marketing

Meet the restaurant industry's new government adversary

Reality Check: The FTC wants the business to change several longstanding operating conventions. Has it heard why that's a bad idea?

Trending

More from our partners