Servers alleged that they were routinely docked 2 percent to 4 percent of total table sales, a practice employees routinely called "Pete's Tax."
The investigation found that the practice was an established part of the business' operations and that servers were expected to pay at the end of their shifts even when tips were not in cash but on credit card charges. As a result, servers sometimes had to borrow money from coworkers or take cash from ATMs to make their payments, according Brian Johnson, a regional director of enforcement for the Labor Department.
Of the tip money collected by management, about 40 percent went to bartenders on duty, which is legal, Johnson said, while management kept the rest.