The creator of the 'Pete's Tax' is in hot water. Chickie’s and Pete’s, a popular chain of sports bars based in Philadelphia, tried to impose a minimum wage for servers - and illegally collected worker's wages in a 'tip pool.'
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The Fair Labor Standards Act (“FLSA”) defines the term, “employ” in part as to “suffer or permit to work.” This means that employees must be paid for work they were required to perform.
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The Fair Labor Standards Act (FLSA), the federal law, provides rules on overtime, the minimum wage and tip credits can provide significant monetary damages for workers cheated out of their wages.
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