Bartender Sues Houston Restaurant Over Tip Theft
A former employee alleges Relish Restaurant and Bar used shared tip pools to pay management staff.
Updated on Oct. 26, 2026 in Hospitality
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A bartender has filed a federal lawsuit against Relish Restaurant and Bar and its owners, Addie and Dustin Teague, alleging wage theft involving employee tips. The suit claims the restaurant diverted pooled tips to cover management salaries.
Why it matters
The lawsuit alleges violations of the Fair Labor Standards Act, claiming the restaurant used tip redistribution to operate at lower costs than its competitors. This legal action highlights ongoing disputes regarding the transparency of tip credit policies.
The lawsuit alleges that a maitre'd received at least $21,000 from pooled employee tips in 2026. The restaurant currently operates two Houston locations with reported annual sales of $500,000.
The players
Michael Baron
He is the bartender who filed the federal lawsuit against Relish Restaurant and Bar.
Addie and Dustin Teague
They are the owners of Relish Restaurant and Bar who are named as defendants in the wage theft litigation.
The details
The complaint alleges that Relish required staff to contribute to a shared pool distributed by a points system but failed to adequately explain the application of tip credits. These credits allowed the business to pay certain employees below the standard minimum wage.
Timeline
2016: Relish opened its first location in River Oaks.
2024: The restaurant expanded with a second location in Memorial City.
Early October 2026: A wage dispute occurred regarding tip credit explanations.
October 2026: The lawsuit was filed against the restaurant and its owners.
Market Landscape
This case reflects broader industry tensions over labor costs and the legal boundaries of tip redistribution. By challenging these practices under the Fair Labor Standards Act, the litigation forces a re-examination of how restaurants manage labor expenses against their competitors.
The lawsuit highlights how tip credits and pooling policies can directly impact the take-home pay of service industry workers. Customers may now see increased scrutiny regarding how their gratuities are processed and distributed at local dining establishments.
The takeaway
Understanding how your gratuities are handled can help clarify your role in supporting service staff. If you are a tipped employee, familiarizing yourself with your employer's specific tip credit and pooling policy is essential for verifying your wages.
Further reading
Learn more about local labor issues in the Hospitality sector.
Source note: This article includes information reported by Houston Chronicle.
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