The U.S. Labor Department has sued Tobin Hill pizza spot Barbaro, accusing it of violating federal labor laws by making tipped workers give a share of their gratuities to managers.
The suit, filed Sept. 1 in San Antonio federal court, argues that Pizza Bar LLC, which does business as Barbaro, also unlawfully shorted 25 current and ex-employees on their federally mandated overtime pay over a three-year time period.
Restaurateur Chad Carey, whose Empty Stomach Group includes Pizza Bar, denied the allegations in a statement emailed to the Current. As of press time, Pizza Bar hadn't filed an answer to the suit in federal court.
“I understand how this sort of accusation looks, and I take it very seriously. Barbaro pays our employees fairly, and provides health care, paid time off [and] other benefits to our employees," said Carey, whose company also owns Little Death Wine Bar, Vibras and Double Standard. “We’ve been fully cooperating with the Department of Labor audit, which started in May of 2022, and are disappointed that it has led to this litigation. Because this is now in litigation, I am unable to comment fully, but know that we deny the allegations. And I feel confident we’ll resolve it soon.”
The suit alleges that Barbaro required front-of-the house staff “to contribute a percentage of their sales" into a tip-share pool. "All bartenders’ tips went into the tip share pool," the document also noted.
The restaurant then redistributed the pool to those who worked that shift, including a manager or supervisor, the Labor Department alleges. According to the Fair Labor Standards Act (FLSA), managers and supervisors can't participate in tip pools.
The practice occurred from May 9, 2020, until at least May 8, 2022, according to the claims in the suit.
The petition also accuses Barbaro of not paying overtime at the federally required rate. Overtime provisions of the FLSA state that hourly employees who work more than 40 hours weekly must be compensated for overtime at one-and-a-half times the regular rate. The suit alleges Barbaro paid for overtime below that standard.
The Labor Department is suing for unpaid tips and overtime so the funds can be distributed to current and former employees. The feds are also seeking an equal amount in liquidated damages, which are intended to compensate workers for damages incurred as a result of not being timely paid all wages they legally earned, according to the suit.
San Antonio trial lawyer Chase Hardy — an attorney with Griffin Purnell who's unaffiliated with the suit — said FLSA suits are some of the most common lawsuits filed by the federal government because “the laws are written in such a way that employers can be backed in a corner ... for something as simple as a minor miscalculation in a payroll system.”
The Current reached out to former Barbaro employees for comment but received no response by press time.
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Feds sue San Antonio pizza spot Barbaro, saying it violated labor, tipshare laws
Restaurateur Chad Carey, who operates Barbaro, denied the allegations and said he's looking forward to a quick resolution.
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About The Authors
Nina Rangel
Nina Rangel uses nearly 20 years of experience in the foodservice industry to tell the stories of movers and shakers in the food scene in San Antonio. As the Food + Nightlife Editor for the San Antonio Current, she showcases her passion for the Alamo City’s culinary community by promoting local flavors, uncovering...
