A federal investigation into Black's Barbecue found the Central Texas food chain broke a year-old law by reallocating $230,353 in tips from servers to managers.

Black’s Barbecue linked to illegal tip-sharing by federal investigation

A federal investigation into Black’s Barbecue found the Central Texas food chain broke a year-old law by sharing tips – reallocating $230,353 in tips from servers to managers, taking away wages earned from more than 270 employees – the US Department of Labor announced on Monday.

Black’s Barbecue locations in Austin, New Braunfels, Lockhart and San Marcos were targeted by the Department of Labor’s Wage and Hour Division investigation resulting from a 2019 audit and change in federal labor regulations. work making it illegal to share tips earned by employees with management personnel.

Kent Black, grandson of Black’s Barbecue original owner Edgar Black Sr. and a current member of Black’s ownership group, told the American statesman on Tuesday that the company has outsourced its payroll and does not was unaware of the revised rule that managers should not take tips.

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