If you work in a restaurant, you are, have been, or probably will be the victim of wage theft. That Chickie’s & Pete’s, has been forced to pay $8.52 million in back wages and damages to employees for illegally docking a portion of their tips, not paying minimum wage, or overtime, is sadly an exception. Usually the employers get away with it, because many food services jobs have wage theft locked in as part of the business model.
Servers alleged that they were routinely docked 2 percent to 4 percent of total table sales, a practice employees routinely called “Pete’s Tax.”
The investigation found that the practice was an established part of the business’ operations and that servers were expected to pay at the end of their shifts even when tips were not in cash but on credit card charges. As a result, servers sometimes had to borrow money from coworkers or take cash from ATMs to make their payments, according Brian Johnson, a regional director of enforcement for the Labor Department.Of the tip money collected by management, about 40 percent went to bartenders on duty, which is legal, Johnson said, while management kept the rest.
To address the ubiquity of wage theft in the world of fast food, the New Castle County Council has recently passed a resolution supporting fast food workers.
…the resolution decries the low average fast food worker wage of $8.80 and support workers organizing for a living wage and a union.
“For the past forty years, higher-paying manufacturing jobs have been replaced by low-wage service sector jobs. Unless we make sure service sector jobs are family-sustaining, income inequality will continue to rise,” said Council President Christopher Bullock. “New Castle County is committed to doing something about fast food poverty in our community.”“Today we’re sending a message that New Castle County can do better that fast food low pay and wage theft. Fast food workers deserve a living wage and should be paid for their work. We’re committed to standing with fast food workers in our community who are demanding a living wage and a union,” said Councilman David Tackett.
To help keep the pressure on and highlight the crime of wage theft, Wilmington fast food workers, along with community leaders, elected officials and clergy, will a rally at the McDonald’s on 4th Street on Thursday, April 3 at 1pm.