- Associated Press - Friday, October 2, 2015

SADDLE BROOK, N.J. (AP) - Officials have filed a lawsuit against a New Jersey-based restaurant company for allegedly pocketing more than $40,000 in tips from employees.

The Record reports (https://bit.ly/1KZm9CG ) that the U.S. Department of Labor is suing Saddle Brook-based A.C.E Restaurant Group for allegedly requiring servers and bartenders at its restaurants to contribute a percentage of their tips to a tip pool.

The suit names the company’s president, Arnold Runestad, as a defendant, along with its 17 locations. It claims that the pool would then be “unlawfully” distributed to pay wages of non-tipped employees, such as custodians and kitchen workers.

It also alleges that management would keep a portion of the tips, allegedly violating the Fair Labor Standards Act.

Neither Runestad nor the company responded to requests for comment on Thursday.


Information from: The Record (Woodland Park, N.J.), https://www.northjersey.com

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