Mackenzie River Pizza owners ordered to pay $319K for wage violations
IDAHO FALLS, Idaho (KIFI) - An Idaho Falls restaurant has been ordered to pay a total of $319,000 for illegal tip sharing, child labor and overtime violations.
Granite Mountain Restaurants LLC and MRP Idaho Falls LLC are owners and operators of the Mackenzie River Pizza restaurant in Idaho Falls.
According to a news release from the U.S. Department of Labor, the employer paid the servers and bartenders less than the federal minimum wage of $7.25 per hour by taking a tip credit and counting customers’ tips towards their hourly wage. The employer organized and oversaw the tip-pool arrangement, requiring employees to share their tips with back-of-the-house staff. Mackenzie River Pizza retaliated against one employee who spoke out against the practice, the release said.
The employer also failed to pay overtime rates and violated federal child labor laws by allowing minors between the ages of 14 and 15 to work during school hours and later and longer than permitted by the Fair Labor Standards Act. Furthermore, the division found a 15-year-old performing baking activities, a prohibited occupation for minors, the release said.
U.S. District Court Judge David Nye ordered the restaurant to pay a total amount of $319,039.90. $139,981.45 is tips and unpaid minimum wage and overtime wages, and an equal amount for liquated damages along with a $5,000 in punitive damages and $34,077 for civil penalties.
“Illegal practices by restaurant employers such as Mackenzie River Pizza in Idaho Falls hurt employees and the entire restaurant employer community facing unfair competition due to prohibited labor practices, including wage theft and retaliation against workers exercising their rights,” said Regional Solicitor of Labor Marc Pilotin in San Francisco. “The resolution of this case should remind employers that we are determined to protect workers and bring bad actors into compliance.”
The U.S. Department of Labor has a website where you can learn more about wage and hourly protections. Go to: https://www.dol.gov/agencies/whd. You can also call the agency's free helpline at 866-4US-WAGE (866-487-9243).
