A Korean restaurant in LA Koreatown has been ordered to pay more than $66,000 in unpaid tips and fines for violating federal labor laws.
The U.S. Department of Labor (USDL) announced on October 18 that Oo-Kook Korean BBQ located at 8th and Kingsley violated the Fair Labor Standards Act.
According to the USDL, Oo-Kook Korean BBQ allowed a manager to participate in a tip pool and determined that, from April 2021 through October 2022, they retained more than $28,000 in workers’ tips.
As a result, the owner must pay $28,213 in unpaid tips to 35 employees, $28,213 in liquidated damages, and a civil penalty of $10,103.
“Under labor law, employers have the discretion to distribute tips to employees, including managers, but only if they are engaged in services that can receive tips, such as serving food or providing hospitality to customers,” said Jinni Kang, a labor lawyer.
The issue in Oo-Kook’s case was that the owner allowed the distribution of tips to managers who did not meet these criteria.
Meanwhile, this is the third time Oo-Kook has been found in violation of labor laws. In 2012, it was caught owing 14 employees $5,300 in wages unpaid. In 2020, it was found to have failed to pay one employee $16,253.
“Employers have an obligation to ensure that they are paying their employees all wages, including tips,” said Siriporn Poondee, USDL Wage And Hour Investigator Agency of Wage and Hour Division. “We encourage employers to check the Department of Labor’s website for programs to help ensure compliance with labor laws.”
The investigation was a collaboration between the Food Services Workers Initiative and the Korean Immigrant Workers Alliance (KIWA).
“We asked the Department of Labor to investigate after learning about the continued practice of managers taking tips from Oo-Kook workers,” said KIWA Treasurer Alexandria Suh. “To ensure that workers’ rights are protected, employers should strive to operate in a compliant manner.”
BY YEJIN KIM, JUNHAN PARK [kim.yejin3@koreadaily.com]
