Idaho Falls, ID: An Idaho Falls restaurant faces hefty fines for violations related to tip sharing, child labor, and overtime. Granite Mountain Restaurants LLC and MRP Idaho Falls LLC own and operate the Mackenzie River Pizza restaurant in Idaho Falls.
A recent report from the U.S. Department of Labor revealed that the employer underpaid servers and bartenders by using a tip credit to offset their wages below the federal minimum of $7.25 per hour. The employer managed and supervised the tip-pool arrangement, mandating that employees distribute their tips with back-of-the-house staff.
Mackenzie River Pizza took action against an employee who spoke out against the practice, according to the release.
The employer neglected to pay overtime rates and broke federal child labor laws by letting minors aged 14 to 15 work during school hours and beyond the allowed time limits. In addition, the department discovered a 15-year-old engaging in baking activities, which is a restricted job for minors, according to the statement.
The restaurant was ordered by U.S. District Court Judge David Nye to pay a total amount of $319,039.90. The total amount includes tips, unpaid minimum wage, overtime wages, liquidated damages, punitive damages, and civil penalties.
“Unethical behavior by restaurant employers like Mackenzie River Pizza in Idaho Falls negatively impacts employees and the restaurant employer community, creating unfair competition through illegal labor practices such as wage theft and retaliation against workers standing up for their rights,” stated Regional Solicitor of Labor Marc Pilotin in San Francisco. “The resolution of this case serves as a strong reminder to employers about the commitment to safeguarding workers and ensuring compliance.”