Major Food Group, an upscale Italian hospitality company based in NYC, faced legal scrutiny over wage discrepancies in its Boston restaurant, Contessa. A settlement was reached involving 68 employees after claims of mismanaged tip distributions surfaced. The restaurant allegedly employed a tip pooling system that improperly allocated tips to back-of-house employees, who are not entitled to such compensation, violating Massachusetts labor laws. As a result, employees were underpaid for an extended period. Although the company denies wrongdoing, the case underscores serious labor violations concerning pay practices within the hospitality industry.
The allegations against Major Food Group highlight illegal practices in their tip distribution system, which led to significant underpayment of Boston employees.
Under Massachusetts law, front-of-house employees can earn a lower wage, but back-of-house staff have to be paid the standard minimum wage, making the situation legally problematic.
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