Dept. of Labor cites Chao’s Mongolian Grill over tips

UPDATE: We talked to the owner of the restaurant. He says he was not pocketing the tip money. They were just dividing it up with the bus boys. He based the policy on other restaurants in the area. But now he says he will comply with the law.


CHATTANOOGA (WDEF) – The U.S. Department of Labor’s Wage and Hour Division has fined a Chattanooga Restaurant.

Chao’s Mongolian Grill LLC will pay $48,197 in back wages to eight employees.

Investigators say the Brainerd Village restaurant required servers to surrender 15% of their tips to the business.

They also say the management failed to pay time and a half overtime and to maintain payroll records.

“The U.S. Department of Labor is committed to ensuring that employees receive the wages they have legally earned for all the hours they have worked,” said Nettie Lewis, Wage and Hour Division District Director in Nashville.

“The Department’s work levels the playing field for employers who play by the rules. We encourage all employers to reach out to us for information about how to comply with the law.”

Categories: Chattanooga, Featured, Local News

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