An investigation into two of McMenamins locations, including the sprawling Edgefield property in East Multnomah County, has allegedly revealed that tips earned by employees may have been unlawfully shared with managers and supervisors.
In a letter sent to McMenamins employees, the U.S. Department of Labor claimed an investigation by the Wage and Hour Division found that during a period from May 16, 2019, through October 26, 2022, tips may have been withheld at the Edgefield and Cedar Hills locations. In response, the popular brewery, eatery and hospitality giant said it was “baffled” by the findings, citing a different understanding of who is eligible for tips.
It is unclear what prompted the Department of Labor to investigate McMenamins.
According to the report, McMenamins used a “tip out” policy that required restaurant and pub employees to share tips with “Assistant Managers” and “Assistant Assistant Managers.” As a result, the Department of Labor said more than $800,000 in tips were redirected to managers, during a time period that included the difficult stretch at the height of the pandemic.