State AG Secures $422,093 Settlement for Restaurant Service Charge Violations
Summary
Ten State Attorneys General have secured a $422,093 settlement with two Massachusetts restaurants, Jackeens, Inc. d/b/a Carrie Nation and Inishowen, Inc. d/b/a The Dubliner. The settlement resolves allegations that the restaurants failed to distribute a 3% service charge to 84 employees between May 2023 and June 2024.
What changed
The Massachusetts Attorney General's Office announced a settlement totaling $422,093 with two Beacon Hill restaurants, Carrie Nation and The Dubliner. The settlement resolves allegations that these establishments charged customers a 3% service fee but failed to distribute these funds to 84 wait staff and service employees between May 2023 and June 2024, in violation of the Massachusetts Wage Act. Carrie Nation will pay over $143,000 and The Dubliner will pay over $278,500 in restitution and civil penalties.
This enforcement action highlights the critical importance of accurately distributing service charges to employees as mandated by wage laws. While both restaurants cooperated and have since come into compliance, the settlement includes significant financial penalties and restitution for affected workers. Employers in the restaurant industry, particularly those in Massachusetts, should review their policies and practices regarding service charges to ensure full compliance with wage and hour laws to avoid similar penalties. The investigation was initiated by an anonymous tip, underscoring the importance of internal reporting mechanisms for employees.
What to do next
- Review service charge distribution policies and procedures to ensure compliance with state wage laws.
- Verify that all collected service charges are distributed to eligible employees in a timely manner.
- Consult legal counsel to confirm adherence to Massachusetts Wage Act requirements regarding service charges.
Penalties
Over $422,000 in total restitution and civil penalties combined for the two restaurants.
Source document (simplified)
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Press Release
Press Release AG’S Office Secures $422,093 Settlement with Two Beacon Hill Restaurants for Failure to Distribute Service Charges to Staff
Citations Include Restitution for the Affected Employees and Penalties to the Commonwealth
For immediate release: 3/06/2026
- Office of the Attorney General
- The Attorney General's Fair Labor Division
Media Contact
Kennedy Sims, Deputy Press Secretary
Phone
Call Kennedy Sims, Deputy Press Secretary at (617) 727-2543
Online
Email Kennedy Sims, Deputy Press Secretary at Kennedy.Sims@mass.gov
BOSTON — The Attorney General’s Office (AGO) today announced that it has reached a settlement with Jackeens, Inc. d/b/a Carrie Nation and Inishowen, Inc. d/b/a The Dubliner, two tavern-style restaurants located in Beacon Hill. The settlement resolves allegations that the restaurants charged customers a 3% service fee and failed to distribute the proceeds to 84 wait staff and service employees between May 2023 and June 2024 in violation of the Massachusetts Wage Act.
As a result of the settlement, Carrie Nation will pay over $143,000 in restitution and civil penalties. The Dubliner will pay over $278,500 in restitution and civil penalties
A “service charge” is a fee added by a restaurant to a customer’s bill that must be distributed to wait staff, service employees, or service bartenders. Businesses may not retain service charges to cover operating costs or supplement wages for non-tipped staff.
The AGO’s Fair Labor Division (FLD) began investigating this matter following an anonymous tip that Carrie Nation failed to distribute the profits from a 3% service fee to wait and service staff. The investigation revealed that between May 22, 2023, and June 1, 2024, Carrie Nation and The Dubliner failed to distribute service charges to 84 service employees as required by law. As a result, those workers are entitled to restitution.
Both restaurants cooperated with FLD’s investigation and have since come into compliance with the applicable laws. Furthermore, the restaurants began making restitution payments to affected wait and service staff employees before the citation was even issued.
This matter was handled by Assistant Attorney General Justin Polk, and Supervising Investigator Yolanda O’Shea of the AGO’s Fair Labor Division, which is tasked with enforcing the state’s wage and hour, child labor, and other employment laws.
Workers in Massachusetts who believe their workplace rights have been violated are encouraged to file a complaint with the AGO’s Fair Labor Division at mass.gov/ago/fld. For more information about the state’s employment laws, workers may call the AGO’s Fair Labor Hotline at (617) 727-3465 or visit mass.gov/ago/fairlabor for information available in multiple languages.
Media Contact
Kennedy Sims, Deputy Press Secretary
+
Phone
Call Kennedy Sims, Deputy Press Secretary at (617) 727-2543
Online
Email Kennedy Sims, Deputy Press Secretary at Kennedy.Sims@mass.gov
Office of the Attorney General
The Attorney General is the chief lawyer and law enforcement officer of the Commonwealth of Massachusetts.
The Attorney General's Fair Labor Division
The Attorney General’s Fair Labor Division protects workers from exploitation and sets a level playing field for employers. We enforce wage and hour, public construction, and child labor laws.
Media Contact
Kennedy Sims, Deputy Press Secretary
Phone
Call Kennedy Sims, Deputy Press Secretary at (617) 727-2543
Online
Email Kennedy Sims, Deputy Press Secretary at Kennedy.Sims@mass.gov
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