(MyKeeneNow)- The U.S. Department of Labor has successfully recovered $124,000 in back wages, withheld tips, and liquidated damages for 126 employees of Tito’s Taqueria, a counter service restaurant with locations in Massachusetts, New Hampshire, and Vermont. The chain restaurant has one location in Keene, at 60 Island St. in the same building as Domino’s Pizza.

Additionally, the restaurant chain has been fined $12,000 for illegal tip violations, according to a news release from the Labor Department.

An investigation by the Department of Labor’s Wage and Hour Division’s Northern New England District Office uncovered that Tito’s Taqueria had been unlawfully requiring employees at its Greenfield, Mass., Keene and Brattleboro locations to share a portion of their tips with managers. Furthermore, the restaurant failed to pay workers the mandated overtime rate for hours worked beyond the standard 40-hour work week.

The Fair Labor Standards Act (FLSA) explicitly prohibits owners and managers from retaining any part of employees’ tips, emphasizing that tips are the rightful earnings of the employees.

In response to these violations, Tito’s Taqueria has agreed to an administrative settlement. The company has paid $62,452 in back wages and withheld tips, along with an equal amount in liquidated damages, totaling $124,904 for the affected employees. Additionally, Tito’s Taqueria has paid $12,214 in civil money penalties to resolve these violations, the release said.

This settlement is part of the Wage and Hour Division’s broader efforts to ensure fair labor practices in the food service industry. In fiscal year 2023, the division recovered over $29.6 million in back wages for nearly 26,000 food service workers nationwide and imposed $6.1 million in civil money penalties.

Workers and employers seeking more information or assistance can contact the Wage and Hour Division confidentially at 1-866-4-US-WAGE (487-9243). The division also offers resources like the restaurant compliance assistance toolkit, an overview of FLSA protections for restaurant workers, and a search tool for workers to check if they are owed back wages. Additionally, the department provides a free Timesheet App for tracking hours and pay, available in both English and Spanish for Android and iOS devices.