The U.S. Department of Labor confirmed its Wage and Hour Division is investigating Valentina's Tex Mex BBQ in Buda.
BUDA, Texas (KXAN) — The U.S. Department of Labor confirmed its Wage and Hour Division is investigating Valentina's Tex Mex BBQ in Buda.
The department said no other information will be available until the investigation is completed.
KXAN media partners at the Austin Business Journal reported that the owners have a roughly $2.3 million debt.
The couple recently expanded their south Austin food truck location to a new storefront in downtown Buda.
KXAN reached out to the restaurant's owners for additional comment but has not heard back yet.
On April 25, the owners announced on social media that Valentina's will be under new management.
Owners Miguel and Modesty Vidal said the restaurant will be closed until May 8 as they transition.
"For us, scaling our business from 600 sq. ft. to 6,000 sq. ft. has proven more than we can manage, and we recognize and admit to the many issues and challenges Valentina’s has had since we’ve moved," the Vidals said in the post. "We can no longer continue to give our loyal customers sub par customer service and food."
KXAN previously reported on backlash the restaurant faced over its tip policy.
A former employee told KXAN if employees broke certain rules, they’d be at risk of not receiving tips. The owners said the policy has since changed.
The former employee said tips were taken at their discretion and when they were taken, they’d be taken for the entire week the incident happened.
According to a screenshot of the policy circulating on social media, tips could be taken for a number of reasons:
In an interview in July, the Vidals confirmed that was their policy at one point, but that they weren't enforcing it anymore.
KXAN's Sarah Al-Shaikh will have more on this story. You can watch at KXAN News at 6 p.m.
