Oregon Korean BBQ Fined $96,985 for Child Labor, Overtime, Tip Pool Violations
Summary
The U.S. Department of Labor's Wage and Hour Division investigated Kkoki Korean BBQ in Eugene, Oregon, finding violations of the Fair Labor Standards Act. The employer allowed a 15-year-old employee to work beyond permitted hours on school days, past 9 p.m. during summer, and more than 40 hours weekly. The employer also failed to pay overtime for hours exceeding 40 per week and improperly permitted a manager to participate in the employee tip pool. The employer must pay $58,569 in back wages to 32 workers and $38,416 in civil money penalties for repeated and willful violations.
What changed
The DOL investigation found Kkoki Korean BBQ violated three provisions of the Fair Labor Standards Act: child labor rules limiting when and how long minors can work, overtime requirements mandating 1.5x pay for hours over 40 per week, and tip pool regulations prohibiting employer/manager participation in retaining tips belonging to tipped employees. The employer is required to pay $58,569 in back wages to 32 affected workers and $38,416 in civil money penalties.
Restaurant employers should review their scheduling practices for minor employees, ensure overtime calculations are accurate, and verify that tip pool arrangements comply with FLSA requirements prohibiting managers from retaining tips. The civil money penalties indicate these were not first-time violations, signaling DOL's continued enforcement focus on the restaurant industry for labor standards compliance.
What to do next
- Ensure minors under 18 do not work beyond FLSA-permitted hours on school days or past 9 p.m.
- Pay overtime at 1.5x rate for hours worked over 40 per week
- Prohibit managers from participating in employee tip pools
Penalties
$96,985 total ($58,569 in back wages for 32 workers; $38,416 in civil money penalties for repeated and willful violations)
Archived snapshot
Apr 16, 2026GovPing captured this document from the original source. If the source has since changed or been removed, this is the text as it existed at that time.
News Release
US Department of Labor finds youth employment hours, overtime, tip pool violations at Oregon Korean BBQ restaurant chain
Employer must pay $96,985 in back wages, penalties for federal violations EUGENE, OR – A U.S. Department of Labor investigation found an Oregon-based Korean barbeque chain restaurant violated federal law when it allowed a teen employee to work more than permissible hours, denied workers overtime pay, and improperly kept employees’ tips.
Investigators from the department's Wage and Hour Division discovered that the owners of Kkoki Korean BBQ allowed a 15-year-old employee to regularly work more than three hours on school days, past 9 p.m. between June 1 and Labor Day, and more than 40 hours in a workweek, all violations of the Fair Labor Standards Act.
Additionally, the employer failed to provide overtime pay for employees’ hours worked over 40 in a workweek and permitted a restaurant manager to unlawfully participate in the employee tip pool and retain tips that belonged exclusively to the tipped employees.
The investigation resulted in the recovery of $58,569 in back wages for 32 workers, along with $38,416 in civil money penalties for repeated and willful violations, as well as child labor violations.
Workers and employers can call the Wage and Hour Division with questions and requests for compliance assistance at its toll-free helpline, 866-4US-WAGE (487-9243). Employers are encouraged to use the agency’s industry-specific compliance assistance toolkits to learn about their responsibilities under the laws enforced by the division. The agency’s PAID program offers employers an opportunity to self-report and resolve potential minimum wage and overtime violations under the FLSA, as well as certain potential violations under the Family and Medical Leave Act.
Learn more about the Wage and Hour Division, including a search tool that workers can use if they think they may be owed back wages collected by the division. Download the agency’s free timesheet app for iOS and Android devices to track hours and pay.
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Agency Wage and Hour Division Date April 15, 2026 Release Number 26-221-SAN Media Contact: OPA West Media Email opa-west-media@dol.gov Media Contact: Ryan Honick Phone Number 202-693-4247 Email honick.ryan.l@dol.gov Share This
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