Evansville diner owner must allow employees to participate in federal wage investigation

Sarah Loesch, Evansville Courier & Press
·3 min read

EVANSVILLE — As part of a court order, Friendship Diner will have to allow a U.S. Department of Labor representative to inform the restaurant's employees of their right to cooperate with federal wage investigators amid a probe into wage theft.

The diner's owner, Bardhyl Shabani, will also have to post the statement for employees in both Spanish and English in the business.

The order was filed in Indiana Southern District Court Monday, in response to the department of labor request in March for a restraining order and injunction against Friendship Diner, LLC and Shabani.

Shabani previously told the Courier & Press he didn't intend to do anything wrong.

"I love all my customers and my employees," he said.

The department's Wage and Hour Division alleges Shabani violated the Fair Labor Standards Act’s anti-retaliation provisions by "harassing and threatening employees in an attempt to coerce them into giving false statements to investigators about the mandatory nature of Friendship Diner’s tip pool."

Previous coverage: U.S. Dept. of Labor: Local diner owes $450K to employees after 'tip-pooling scheme'

The department also asked the court to award punitive damages to employees Shabani coerced, according to a news release from the department.

“The Department of Labor will not tolerate an employer’s attempt to obstruct a federal investigation by retaliating or threatening to retaliate against employees,” stated Regional Solicitor Christine Heri in Chicago. "We will use every available legal resource to protect workers, end such illegal actions and hold employers like Bardhyl Shabani accountable, including seeking punitive damages for those harassed.”

Shabani, as well as anyone acting on behalf of him or the business, are also banned from:

  • Discussing the investigation with employees without prior approval from the court;

  • Discriminating against employees who cooperate with the investigation by withholding hours or intentionally placing servers in positions to earn fewer tips;

  • Retaliating against workers in any manner.

The order also states no employee can be fired for anyone reason within the next two years without a written notice being provided to the Wage and Hour Division of the U.S. Department of Labor at least seven days before.

The investigation began in February when the complaint was filed in federal court seeking back wages for 44 employees of Friendship Diner, LLC.

The complaint is based on findings the diner and Shabani owe $450,140 — $225,070 in back wages and an equal amount in liquidated damages, to the employees, the news release from the Department of Labor states.

The investigation looked at pay records from Feb. 22, 2021 to Feb. 19, 2023, and alleged these violations:

  • Operating an illegal tip-sharing pool by requiring servers to return $10 in tips for each weekday shift and $15 in tips for each weekend shift to management. Management kept the servers’ tips or paid bussers' hourly wages;

  • Failing to pay all workers the federally required minimum wage of $7.25 per hour;

  • Failing to pay overtime at time-and-a-half the regular rate of pay for hours over 40 per week;

  • Paying kitchen staff half their wages by payroll check, and half in cash, without combining hours and pay to calculate hours over 40 in a work week for overtime purposes; and

  • Failing to keep accurate payroll records.

The other minimum wage, overtime and recordkeeping violations are still making their way through the court system.

Friendship Diner remains open for business on Evansville's East Side.

This article originally appeared on Evansville Courier & Press: Evansville diner owner must let employees cooperate in wage probe