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Milwaukee Bar Sued Over Illegal Tip Pooling

Yahoo Finance •
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Steny's Tavern and Grill in Milwaukee faces a federal lawsuit over alleged Fair Labor Standards Act violations involving illegal tipping practices. Front-of-house employee Nathan Witman filed the complaint on Feb. 12 in the Eastern District of Wisconsin, claiming the restaurant operated an unlawful mandatory tip pool that included kitchen staff who do not customarily receive tips.

The lawsuit alleges Steny's wrongfully claimed a tip credit it was not entitled to receive under federal law. A tip credit allows employers to count a portion of tipped employees' gratuities toward minimum wage obligations, but Wisconsin's minimum wage remains at $7.25 per hour. The complaint states at least 40 employees were affected by the disputed tip pooling arrangement.

This case follows a similar lawsuit filed in January against St. Paul Fish Company's Milwaukee Public Market location for allegedly allowing managers to take tips meant for other workers. Steny's owner Jerome K. Stenstrup did not respond to requests for comment. The popular Walker's Point establishment operates two locations, with the named restaurant at 800 S. 2nd St. and another in Pewaukee.