Staff members at Louisville's Heine Brothers' Coffee shops are being sent money for unpaid tips after the U.S. Department of Labor told the company it had violated federal wage and hour laws.
Store managers for the local coffee chain sometimes work espresso bar shifts in place of a barista since the company was founded in 1994 and have always received tips while in that role, according to a statement from Heine Brothers' leadership.
But changes to labor laws in 2020 prohibit any employee with the authority to hire or fire staff from earning tips. In July of this year, the Department of Labor notified the company it was in violation of the new rules, Mike Mays, co-founder and president of Heine Brothers', said in the statement.
The company was required to retroactively compensate the baristas, who have since been receiving deposits. Managers were not required to return any of the tips they earned on espresso bar shifts, according to Heine Brothers'.
At least one staff member at Heine Brothers', whose employees voted earlier this year in favor of forming a union, said they received more than $2,200 following the agreement.
"I will be using this money to keep me afloat for now," said Gami Ray, barista and member of the Heine Brothers’ Union Organizing Committee, in a statement. "I cannot pay my bills on $10.25 an hour. That is why we are fighting for living wages, fair schedules and paid sick time as we go back to the negotiating table with Heine Brothers’."
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