Owner Stole Tips From Staff And Wants Me To Sign Something—what Are My Rights?

I have a legal question about an employer committing wage theft by taking the majority of credit tips from the tip pool each week. It’s a longer story, but my specific questions are at the end. Thank you for your patience!

In December 2023, I started working at a café/bakery in my hometown after eight years as a barista and manager. We were open 6am-3pm Wed-Fri and 8am-4pm on weekends. Right away, the tip pool seemed off. I worked 20-25 hours a week but only received about $30 in credit tips (compared to $300+ at my previous job). I knew it wouldn’t be as much, but this felt unusually low.

After some digging, I discovered the owner was scheduling herself for 120 hours a week—despite the shop being open only 40 hours—and taking tips for those hours. When I asked her about it, she claimed she deserved the tips because she worked behind the scenes making pastries. I explained that, as the owner, she wasn’t legally allowed to take tips and even sent her clear resources on the law. She didn’t respond, and things escalated.

I later found out she was also tipping out her mom, who wasn’t on staff but was cleaning her house and watching her kids. Staff members became more upset, so I had the chef talk to her as well. I spoke to her one or two more times about how illegal this was, but it didn’t stop.

In April 2024, I resigned, citing her wage theft and illegal practices in my resignation letter. I reported her to the Department of Labor not for my own benefit, but for the staff who couldn’t afford to leave.

Fast forward to now: the owner messaged me, asking me to come in to pick up money and sign something. I couldn’t go today, but through coworkers, I heard she plans to pay me about $700 in stolen tips.

While I’m glad she’s paying something back, I also heard she’s trying to avoid penalties for child labor violations by paying the stolen tips in full. For context, I estimate she stole at least $7,000 in tips during the four months I worked there, and my share should be closer to $2,000.

Here are my questions: • Do I have a legal right to request a breakdown of all credit tips received and how they were distributed during my time there? • Why might my payout be much lower than what I estimate? • Are there specific questions I should ask the Department of Labor tomorrow? • Is there anything else I should know or ask before signing anything?

Thank you for any advice or suggestions!