$296K in Collectible Tips. 14 Locations. Managers in the Pool.

Little Big Burger, a regional burger chain with 14 locations, was required to pay back $148,248 in misallocated tips plus equal damages after DOL found managers were improperly participating in tip pools.

How It Happened

Little Big Burger required employees at all 14 locations to share tips with managers. Under FLSA, managers and supervisors are prohibited from participating in tip pools under any circumstances. Their tips belong to the hourly workers who earn them.