Square Cafe in East Liberty will pay $89,000 in back wages after reports of tip mishandling

Employees of a popular diner in East Liberty will be paid back wages after allegations that thousands of dollars in tips were mishandled.

Square Café, along S. Highland Avenue, was investigated by the U.S. Labor Department after reports from restaurant servers, according to Tribune-Review news partner WTAE.

Under federal law, tips are to be divvied by servers, busboys, hosts and employees who deal with customers.

In the complaint filed with the department, servers said tips were also going to kitchen staff.

Former server Blue Leigh said that the staff asked regularly, “Can you show us the breakdown of where these tips are going and who’s getting these tips?”

Square Cafe will pay about $89,000 in back wages to 44 employees as part of the agreement.

Owner Sherree Goldstein said in a released statement, “After consulting with legal counsel and the Department of Labor, Square Cafe instituted a payment structure for sharing tips among employees.”

“After two years, Square Cafe was made aware that the payment structure did not comport with federal guidelines. They immediately took action to correct the payment system in cooperation with the Department of Labor.”