How a Tip Dispute Turned Into a $62K FLSA Payout

A tip dispute escalated into nearly $62,000 in FLSA exposure after payroll and recordkeeping issues expanded Department of Labor scrutiny.

DOL guidance reinforces that employers, managers, and supervisors generally cannot keep employee tips unless they directly and solely served the customer.

Weak wage-hour records increase liability, making accurate multi-year documentation a core compliance requirement.