Barrio Tacos locations in Michigan have been sued for alleged wage theft | Eater Detroit

"The East Lansing franchise, opened by owner Jacob Hawley in 2020, is one of three Michigan locations named in a U.S. Department of Labor lawsuit alleging widespread Fair Labor Standards Act violations. The complaint—filed Sept. 7 in federal court—claims that for at least the past two years employees were forced into an unlawful tip-sharing scheme requiring them to give a portion of their tips to managers after each shift, who then redistributed those tips to non-tipped staff; tipped workers were also allegedly paid below the federal minimum wage of $7.25 per hour. Investigators say overtime was calculated using the lower tip-credit rate instead of the applicable minimum wage and that accurate records of hourly rates and overtime were not kept. The Wage and Hour Division seeks $823,324 in back wages and liquidated damages on behalf of 177 workers and has assessed $23,904 in civil penalties against Hawley and the three franchise locations; the restaurants are part of a chain founded in 2012 that previously faced unrelated legal controversy over its concept." - Serena Maria Daniels