Crackin’ Crab forks over more than $250K after withholding employee tips, wage violations


Jun. 10—A restaurant paid over $250,000 in back wages after the company withheld tips to more than 15 Albuquerque employees.

The U.S. Department of Labor announced in a news release Monday that Crackin’ Crab violated federal law by withholding employee tips at two of its three Albuquerque locations.

“By doing so, the employer invalidated their tip credit and failed to pay the required minimum wage,” the release states.

Additionally, the company violated overtime provisions by paying time and a half after 80 hours in a pay period instead of 40 hours in a workweek.

The company sent back $253,636 — $126,818 in owed wages and $126,818 — in damages to 19 employees, according to the Labor Department.

“Restaurant workers depend on their tips and overtime pay to support themselves and their families,” Wage and Hour District Director Evelyn Ortiz said in a statement. “Tips cannot be kept by the employer under any circumstances.”

Established in 2015, Crackin’ Crab has locations in Albuquerque, Santa Fe and Amarillo, Texas.

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