Pennsylvania Diner Owes $1.3 Million After Labor Department Suit

A diner just outside Philadelphia must pay more than $1.3 million in back wages and liquidated damages after losing a Labor Department suit over wage-and-hour violations, a federal judge in Pennsylvania ruled.

Empire Diner is on the hook for nearly $676,000 in back wages and an equal amount in damages after a bench trial determined it willfully violated the Fair Labor Standards Act’s minimum wage, overtime, and recordkeeping provisions, the US District Court for the Eastern District of Pennsylvania said.

The diner paid servers $2.83 per hour and made them hand over 10% to 15% of their tips after ...