Big Texan Steak Ranch Settles Labor Dispute for $800K

The Big Texan Steak Ranch in Amarillo, Texas, has paid $800,000 to settle a Labor Department dispute alleging the restaurant took too much of a bite out of tips to workers.

On June 23, the department announced the agreement with the Amarillo restaurant famous for its 72-ounce steak dinner that’s free if eaten in an hour.

A 2011 federal audit and investigation found minimum-wage and record-keeping violations involving pooling of tips and use of some tips for business costs.

Co-owner Bobby Lee says the restaurant settled the case last September and paid $650,000 in back wages and $150,000 in damages to current and former staff.

Lee and his brother Danny Lee, in a statement, say the Big Texan Steak Ranch has made compliance changes, did not underpay anyone and the mistake was administrative.