The Massachusetts Attorney General’s Office announced on Mar. 6 that it has reached a settlement with Jackeens, Inc., doing business as Carrie Nation, and Inishowen, Inc., doing business as The Dubliner, two tavern-style restaurants in Beacon Hill. The settlement addresses allegations that the restaurants charged customers a 3% service fee but did not distribute the proceeds to 84 wait staff and service employees between May 2023 and June 2024, which is a violation of the Massachusetts Wage Act.
This issue is significant because state law requires that any “service charge” added to a customer’s bill must be distributed to wait staff, service employees, or service bartenders. Businesses are not allowed to keep these charges for operating costs or to supplement wages for non-tipped staff.
As part of the agreement, Carrie Nation will pay more than $143,000 in restitution and civil penalties. The Dubliner will pay over $278,500 in restitution and civil penalties. Both restaurants have started making payments to affected employees before the citation was issued and have since complied with all applicable laws.
The Fair Labor Division of the Attorney General’s Office began investigating after receiving an anonymous tip about Carrie Nation’s handling of its service fees. The investigation found that both establishments failed to distribute required service charges during the specified period. Assistant Attorney General Justin Polk and Supervising Investigator Yolanda O’Shea handled this matter for the Fair Labor Division.
Workers who believe their rights have been violated are encouraged to file complaints with the Fair Labor Division at mass.gov/ago/fld or call (617) 727-3465 for more information.
