Employer: Pizzicato Inc.
121 South Bancroft St.
Portland, OR 97239
Type of action: Consent Judgment and Order
Name of defendants: Pizzicato Inc; Mark Frankel; Tracy Frankel; and John-Felix Rippel
Background: Aninvestigation by the U.S. Department of Labor’s Wage and Hour Division found 11 restaurants operating under Portland-based restaurant chain Pizzicato illegally allowed managers to participate in tip pools and by doing so withheld a portion of employees’ earned tips. Federal law prohibits restaurant employers from tipping out managers from a tip pool, including managers paid on an hourly basis. The investigation also revealed the employer hired a 17-year-old minor to drive a motor vehicle, a violation of the Fair Labor Standards Act’s hazardous occupations for minors.
Resolution: The consent judgment permanently enjoins Pizzicato owners Mark and Tracy Frankel and company officer John-Felix Rippel from violating the FLSA and orders the payment of $270,101 in back wages as well as $270,101 in liquidated damages, for a total of $540,202 for 367 employees. The court also ordered Pizzicato to pay $29,797 in penalties.
Court: U.S. District Court for the District of Oregon
Quotes: “The resolution of this case should remind restaurant employers that the law forbids managers and supervisors to participate in tip-pools and pocket a portion of employees’ tips,” said Regional Solicitor of Labor Marc Pilotin in San Francisco. “The U.S. Department of Labor is committed to ensuring that employees receive all the money they earn, including tips paid by customers.”
“Wage theft, including employers’ pocketing workers’ tips, is a major concern for restaurant industry workers, who are some of the most vulnerable, low-wage workers in our community,” added Wage and Hour Division District Director Katherine Walum in Portland.
The division’s Portland district office conducted the investigation. The San Francisco Regional Office of the Solicitor reached the consent judgment in court.