The U.S. Department of Labor (DOL) has issued a statement against a group that operates numerous steak and seafood restaurants in Hawaii, claiming it has engaged in illegal labor practices at the expense of its servers.
On June 30, the DOL issued a statement on the labor practices of the DK Restaurant Group, alleging that it had required employees to share $58,855 in tips with managers whose salaries had been cut. This constitutes a violation of the Fair Labor Standards Act, which stipulates that managers and supervisors may not share tips given to servers.
The DK group has four locations in Hawaii under the brand “Sansei Seafood Restaurant and Sushi Bar” as well as one eponymous steakhouse. The company was founded by Hawaiian chef and entrepreneur Dave “D.K.” Kodama, who opened the first Sansei restaurant in 1996, and has since expanded to three of the Hawaiian islands.
A review by Condé Nast Traveler noted the Sansei chain’s popularity among locals, praising Sansei’s adventurous sushi offerings as well as the restaurants’ “Cheerful and high-energy” service.
“Customers tips to restaurant staff for good service are the private property of those workers in the tip pool, such as servers, bartenders, and other front-line workers. Any attempt by management to misuse a portion of these tips violates tipped workers’ wage rights,” said the Department of Labor’s Honolulu District Director Terence Trotter. “The U.S. Department of Labor is determined to protect workers’ right to...
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