🗞️ Burned Before the Grill: Oregon BBQ Chain Caught in Federal Labor Crackdown
The DOL found Kkoki Korean BBQ violated federal labor law through illegal tip pooling, unpaid overtime, and child labor violations, ordering $96,985 in back wages and penalties for 32 workers.
Federal labor investigators have found that Kkoki Korean BBQ, an Oregon restaurant chain operating in Eugene, Portland, and Salem, violated multiple provisions of the Fair Labor Standards Act, the U.S. Department of Labor announced Wednesday. The enforcement action will require the company to pay $58,569 in back wages to 32 workers and an additional $38,416 in civil money penalties, bringing the total liability to $96,985.
The violations span three areas of federal labor law. Investigators found that a 15-year-old employee was routinely scheduled in excess of what the FLSA permits for workers aged 14 and 15, including shifts exceeding three hours on school days, hours extending past 9 p.m. during the summer months, and weeks surpassing 40 hours. The company also failed to compensate employees at the overtime rate for hours worked beyond 40 in a given week. In addition, a restaurant manager was allowed to draw from the employee tip pool, a practice Congress expressly prohibited when it amended the FLSA through the Consolidated Appropriations Act of 2018, which bars managers and supervisors from receiving any share of worker gratuities.
The findings come against the backdrop of a prior federal enforcement action against the company. A February 2022 investigation by the same division found tip pool and overtime violations across the chain's Portland, Eugene, and Salem locations, resulting in $84,864 in back wages and an equal amount in liquidated damages for 118 workers, along with $30,199 in penalties — a combined total of $199,927. The 2026 action does not include liquidated damages but adds child labor violations not present in the earlier case. Federal law allows the Labor Department to assess steeper civil money penalties when violations are deemed repeated and willful, a standard the agency applied here.
Employers in the restaurant industry seeking to come into compliance can reach the Wage and Hour Division's confidential helpline at 866-487-9243 or consult the agency's industry-specific compliance toolkits online.
Key Points
- Kkoki Korean BBQ was found in violation of the FLSA following a federal investigation concluded April 15, 2026, covering locations in Eugene, Portland, and Salem
- A 15-year-old employee was scheduled beyond the legal hour limits the FLSA sets for workers aged 14 and 15
- Employees were denied overtime pay for hours exceeding 40 per week
- A manager was permitted to participate in and retain a share of the employee tip pool, which federal law has prohibited since 2018
- 32 workers will receive $58,569 in back wages; $38,416 in civil money penalties was assessed for repeated and willful violations
- The action follows a February 2022 DOL investigation into the same chain involving 118 workers, resulting in $84,864 in back wages, an equal amount in liquidated damages, and $30,199 in penalties; the 2026 action adds child labor violations not present in the earlier case
Primary Source Author: U.S. Department of Labor, Wage and Hour Division
Primary Source: U.S. Department of Labor Press Release WHD20260415-0
Primary Source Link: https://www.dol.gov/newsroom/releases/whd/whd20260415-0
