Omaha Club Forced To Pay Up

By: WOWT Email
By: WOWT Email

For more information about the FLSA and other federal wage laws, call the Wage and Hour Division’s toll-free helpline at 866-4US-WAGE (487-9243) or visit this website.

A federal investigation forces Omaha's Happy Hollow Club to pay tens of thousands of dollars back to shorted employees.

An investigation by the U.S. Department of Labor found minimum wage, overtime and record-keeping violations at the club. As a result, Happy Hollow Club Inc. has paid 38 employees a total of $65,705 in back wages.

The investigation found that Happy Hollow Club required servers to turn a percentage of their tips over to the employer. They were told it was to help defray the cost of wages for bus help.

Under federal law, tips are the property of the tipped employee and/or employees participating in a valid tip pool. An employer cannot require servers to turn in tips.

Additionally, an employer of a tipped employee is required to pay no less than $2.13 an hour in direct wages, provided that amount, plus the tips received, equals at least the federal minimum wage of $7.25 per hour.

If an employee’s tips, combined with the employer’s direct wages, does not equal the minimum wage, the employer must make up the difference.

The country club also improperly classified some employees as exempt from overtime requirements and failed to pay them time and one-half for hours worked beyond 40.

Happy Hollow Club has agreed to comply with the FLSA in the future.

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