GRAND RAPIDS, Mich. (WOOD) — The United States Department of Labor says that a Mexican restaurant owner with stores in Michigan, including in West Michigan, owes its workers backpay after withholding tips, minimum wages and overtime pay.

According to court documents, from Oct. 11, 2020, to Oct. 10, 2022, Jacob Hawley, would take a percentage of tips from servers and bartenders and redistribute the tips to kitchen staff at three of his restaurants, all of which are called Barrio Tacos. The Department of Labor says this violates federal law, which prohibits requiring employees to turn over tips to employees who don’t regularly receive tips.

Federal law requires that all non-tipped employees be paid minimum wage. When Hawley required his tipped employees to overturn some of their tips, he did not pay them at least $7.25 per hour, according to court documents. He also did not pay time and a half for overtime or keep accurate payroll records.

The Department of Labor says Hawley must pay the 177 employees listed in court documents backpay and liquidated damages.