The U.S. Department of Labor says Roy's restaurants in Hawaii violated wage laws.
The department said Friday Roy's Holdings Inc. has agreed to return nearly $137,000 in tips and pay about $88,000 in back wages to 326 tipped servers.
Allegations included tipped employees were paid less than minimum wage and forced to pay part of their tips to non-tipped kitchen staff earning at least minimum wage.
Roy's attorney Michael Lam says there are inaccuracies in the department's claims. He says a stocker position earned $7 per hour and shared in a tip pool. He says servers were not required to share their tips with kitchen staff.
Lam says a stocker is an entry-level position that helps the wait staff and their pay increased to $7.25 after the department raised concerns.