Campbell’s office said it has reached a settlement with Carrie Nation and The Dubliner, which “resolves allegations that the restaurants charged customers a 3% service fee and failed to distribute the proceeds to 84 wait staff and employees between May 2023 and June 2024 in violation of the Massachusetts Wage Act.”
Carrie Nation will pay more than $143,000 in restitution and civil penalties. The Dubliner will pay more than $278,500 in restitution and civil penalties as part of the settlement agreement, the Attorney General’s office said.
The restitution payments are being made to affected wait staff and service employees. The AG’s office said both restaurants cooperated with its investigation and began making restitution payments before the citation was issued.
Under state law, businesses are not allowed to retain proceeds from service fees charged to customers to cover operating costs or supplement wages for non-tipped staff, the Attorney General’s office said.Earnings from those service fees must be distributed to wait staff, service employees and bartenders, per Campbell’s office.
An investigation into the matter was launched by the AGO’s Fair Labor Division following an anonymous tip that Carrie Nation failed to distribute the profits from a 3% service fee to wait staff and service employees, Campbell’s office said.
The Attorney General’s office said both tavern-style restaurants have since come into compliance with state law.
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