Massachusetts chain fined for dippin’ into tip jars, breaking child labour laws

A Massachusetts based coffee shop chain has been cited and handed a $47,000 fine for breaking a handful of employment laws.

In total, four civil citations were handed down to Delgado Donut Shops, LLC and Route 13 Donut Shop, all of whom are under the umbrella of Dippin’ Donuts.

Attorney General Maura Healey announced that the company violated Massachusetts child labour and wage and hour laws. Dippin’ Donuts, along with owners Fernanda and Hilario Delgado, have to pay in excess of $15,000 in restitution and a further $32,000 in fines.

An audit of the business uncovered that the Delgados failed to properly (and ethically) distribute tips received during the working day, thus failing to comply with Massachusetts state law.

It is also alleged that high ranking staff such as managers and indeed the owners frequently creamed off a share of the tips, minimising what could be passed to the front-line service employees.

Inspectors found that around $15,000 of tips were retained by store management, something which is illegal in the state as management and non-service employers are forbidden from claiming tips.

The review also found that the company had consistently broke child labour laws. According to regulations, people under the age of eighteen should not start work prior to 6am and cannot work past 8pm without adult supervision.

It was found that there were sixty occasions when a team of minors were scheduled to work alone beyond the 8pm deadline and one youngster was put down to start their shift before 6am.

“Employers must comply with the law to ensure the health, safety and proper payment of their workers,” said Maura Healy.

“Our child labour laws are designed to protect minors by limiting the hours and times they can work.

The attorney general added: “We want to make sure that this business provides its staff with better working conditions and does not interfere with the earnings that they depend on.”