Two New Hampshire restaurants agreed last month to pay more than $890,000 in back wages and damages to 63 workers for alleged violations of wage laws uncovered by the U.S. Department of Labor.
The federal agency’s Wage and Hour Division announced on April 25 that two locations of the La Carreta Mexican Restaurant in Derry and Londonderry paid some workers only in tips, failed to pay overtime, and had not maintained accurate payroll records.
While tipping seems straightforward, violations and confusion are common, especially when the law changes, lawyers and state enforcers say. For workers who make their living with tips, the rules governing how those extra dollars get distributed can make a big difference.
Rudy Ogden, the Deputy Commissioner for the New Hampshire Department of Labor, said his office receives about one to two complaints a month related to tipping issues. That might not sound like much, but Ogden said he is convinced there are more workers who experience problems but never call to complain.
“It’s not because it’s not happening,” he said.
Rules for tipped workers
Workers who earn tips in New Hampshire can receive hourly wages from their employers that are as low as $3.27 an hour. However, the tips that servers, bartenders, hotel workers and other workers receive must add up to the federal minimum wage, $7.25 an hour, or their employer must pay the difference.
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