A Grand Rapids Restaurant Busted Withholding Tips From Their Employees

When you go out to eat and have a great server, you probably will leave them a great tip. It's a way to reward them for going above and beyond, as well as a way to express your thanks for them making sure your dining experience everything you wanted it to be.

But, what if your tips weren't going to those who made your meal better and instead, someone in management was keeping them for themselves instead? Would you still leave that tip?

One Grand Rapids restaurant is facing federal charges after they pocketed tips that were for employees.

According to a release from the US Department of Labor, they have filed criminal charges against The Saucy Crab Grand Rapids and it's owner Jixi Qui.

They are seeking back wages and damages for 26 workers after an investigation found that the restaurant used a tip pool illegally and denied employees correct minimum and overtime wages.

They found that The Saucy Crab owes $75,402 in back wages to 26 workers. They also say that company violated provisions of the Fair Labor Standards Act when they did these things:

• Included the owner who served as manager, along with cooks and dishwashers in a tip pool customarily used for servers and bartenders.
• Made illegal deductions from servers’ pay for uniforms, aprons, name tags, and lost items such as crab crackers, scissors and oyster forks, resulting in employees failing to earn minimum wage.
• Failed to pay servers time and one-half their cash wage in periods when the employer claimed a tip credit.
• Paid cooks a flat rate, denying them overtime for hours over 40 in a workweek.
• Failed to maintain any payroll records for at least two cooks.
• Failed to pay one cook any wages.
• Did not maintain accurate time records for employees from at least August 2020 until October 2022.

It sounds like a nightmare scenario for anyone who has worked in the food industry in the past. The US Labor department hopes to regain the money lost to employees due to these illegal practices.

Will this cause the Saucy Crab to close it's doors? It's not clear yet- no statement has been made by the owner or on behalf of the restaurant. I did notice that their google listing says they are permanently closed, so it may have already happened.

Here's hoping those employees get what they're owed, because this is a very unacceptable practice.