The Great Smoky Mountain Journal

Staff Reports

Posted: Sunday, January 21, 2018 03:52 PM

Local Knoxville Restaruant Under Fire For Tipping Policy

"The customers are definitely under the impression that when the credit card tips come in, that they're going straight to the employee," a former Full Service BBQ employee said.

At Full Service BBQ, any tip left with a credit or debit card goes to management. The employees are only allowed to keep cash tips.

They separate the cash, let's say on average is $30-60 a day, and separates it between several employees that day," the former employee said.

Anthony Di Franco, the owner of Full Service BBQ told Local 8 New that unlike in most food service jobs, his employees make minimum wage, starting off at $8 an hour with the opportunity for raises. Di Franco said he admits his approach might be unconventional, but he believes higher wages and benefits show how he values his employees.

One local lawyer said the Fair Labor Standards Act states tips are the property of the employee.
"It's great to have personal beliefs. He may believe he's doing the right thing, but unfortunately it doesn't comply with the Fair Standard Labor Act," Attorney Marcos Garza said.

Anthony Di Marco sent Local 8 News the following statement:

"Thank you for letting me tell you a little bit about our company. I have seen the Facebook post talking about our employee compensation. I agree that the way we compensate employees is different than most in the restaurant business, but we have always strived to be more than fair to our employees. We pay the employees more than the server minimum wage of $2.13 an hour, or even the regular minimum wage, that most restaurants pay. Instead, our starting wage is $8.00 per hour.

After 2 weeks, employees generally get a raise to $9.00 per hour. We continue to give raises as employees gain experience. We pay employees an hourly rate well-above the minimum wage because we appreciate our employees, and we do not want them to have to worry about whether or not they will get a decent amount of tips during a shift.

"We also take a team approach. Employees are cross-trained on all of the different job duties so that they can jump in and help each other. That is also why all the cash tips that come in during a shift are divided among the hourly employees who work that shift. None of it goes to management, and it helps reinforce the idea that every employee plays an important role. We provide our employees with benefits as well. We provide health insurance for all full-time employees, not just management, and the company pays half of the premiums. We also offer a 401(k) to all full-time employees and match a percentage of the employee contributions.

Source: WVLT News Special Report