The operator of the themed Karen’s Diner in Dublin – where as part of the concept staff are paid to be obnoxious to customers – has been ordered to pay over €1,000 in compensation to an ex-worker in a row over unpaid tips.
Karen’ Diner only opened its first outlet in Ireland on Dublin’ O’Connell Street in February of last year and the themed restaurant centres around purposely offensive staff from the meme sensation that is a “Karen” – shorthand for an entitled, middle-aged, white woman who prides herself on asking to speak to the manager.
The international chain only opened in Australia in 2021 and quickly became a TikTok sensation.
Maria Wilkinson commenced working at Karen’s Diner here last year and after finishing up on April 19, 2024 she lodged a complaint with the Workplace Relations Commissions (WRC) over unpaid tips in October.
Ms Wilkinson told the WRC at a hearing on March 5 that when she started to work at Karen’s Diner she was told that she and her colleagues would be paid the service charge received from the customers, to be divided between all employees.
However, she stated that at no stage did she ever receive any share of the service charge. At first, she understood it would be nearly €2,000 each and then it changed to nearly €1,000 so she was not sure how much exactly is owed.
No-one from her employer, Dining Experience Ltd trading as Karen’s Diner, appeared at the WRC hearing to rebut Ms Wilkinson’s allegations over the unpaid tips.
In his findings, WRC Adjudicator Pat Brady has ordered Dining Experience Ltd to pay Ms Wilkinson four week’s wages or €1,018.40 for the breach of the Payment of Wages Act concerning the unpaid tips.
In his findings, Mr Brady stated that he was satisfied that there was an agreement between Dining Experience Ltd and Ms Wilkinson, and her colleagues, that tips would be distributed, and this was clearly not honoured.
He said that while it is not clear what became of any tips collected by the employer, Section 4B (2) of the Act makes it clear that an employer “may not retain any share of tips or gratuities received” subject to a number of exceptions.
Mr Brady stated that it is clear from Ms Wilkinson’s evidence that significant tips were being generated as she was told that she might expect payments initially around €2,000 and later around €1,000.
“Whatever became of the tips is not clear except to the extent that neither the complainant nor her co-workers received any of them,” he said.
Mr Brady stated that Ms Wilkinson was paid €12.73 per hour for a 20 hour week, or €254.60 per week.
He said: “For the breach of her rights under the Act I award her four weeks wages in the amount of €1,018.40.”
Mr Brady pointed out that from December 1, 2022, the Payment of Wages (Amendment) (Tips and Gratuities) Act 2022 introduced new rules as to how employers have to share tips, gratuities and service charges generated electronically amongst employees.
Reporting by Gordon Deegan
