Major Food Group, which operates the Italian restaurant Contessa, has reached a settlement with 68 current and former employees who alleged mismanagement of tips. The front-of-house staff claimed they were underpaid due to a 3% fee taken from their tips, which were misallocated to back-of-house workers. Under Massachusetts law, tip pooling is acceptable only among tipped employees, but the settlements revealed continued legal ambiguities. The settlement highlights significant discrepancies in tip distribution practices within the restaurant industry and the importance of legal compliance to protect workers' rights.
Major Food Group's settlement with employees highlighted serious issues around tip pool management, indicating the legal obligations restaurants must follow to protect workers' rights.
The mishandling of the tip pool at Contessa persisted over 15 months, resulting in substantial losses for the employees who were subjected to unfair practices.
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