Café Corazón facing lawsuit filed by employees alleging owners allowed 'mandatory tip pool'

MILWAUKEE (CBS 58) -- It's been 16 years since George and Wendy Mireles first started Café Corazón in Riverwest, which has since served up Mexican eats to the southeast Wisconsin community.

Café Corazón has two other open locations besides the original, including one in Brown Deer and another in Bay View. A fourth, in Mequon, has closed.

But it's at these locations that three employees have claimed engaged in a "mandatory tip pool" that is not valid under the Fair Labor Standards Act.

A lawsuit filed last Thursday alleges that front-of-house staff were required to share both their cash and card tips, that the owners then divvied out to not only those workers, but to managers and supervisors which violates the law.

Now the employees are calling for the owners to acknowledge the violations and reimburse them for both the tips lost and the cost of their legal fees.

Owner Wendy Mireles sent CBS 58 this statement which reads in full below:

We are aware of the lawsuit and take these allegations very seriously. We are committed to complying with all labor laws, including those related to employee compensation and tips. Our employees are the foundation of our business, and we are proud of the workplace we have built. We are reviewing the claims carefully and will respond through the legal process. Since this is an ongoing legal matter, we are unable to comment further at this time.