A popular Philadelphia sports bar and restaurant chain, Chickie's and Pete's, has agreed to pay current and former employees more than $6.8 million in back wages and damages. The chain, according to regulators, improperly took tips from servers and violated federal minimum wage, overtime and record-keeping laws.

Regulators said the proposed consent agreement signed by the chain followed one of the U.S. Department of Labor's largest tipped employee investigations in recent years.

The company and its owner, Peter Ciarrocchi Jr., agreed to pay $6,842,412 to 1,159 employees at nine of the company's locations, plus a $50,000 civil money penalty.

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