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.

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