The U.S. Department of Labor is suing Norman-based nonprofit coffee chain Not Your Average Joe and its founder, Tim Herbel. The federal lawsuit alleges child labor violations, improper tip practices and unpaid wages at locations including the Stella Nova shop on West Main Street.

The suit, filed Friday, Sept. 11, in the U.S. District Court for the Western District of Oklahoma, accuses the organization and Herbel of violating the Fair Labor Standards Act (FLSA). The complaint names the Stella Nova at 1415 W. Main and a recently closed Not Your Average Joe location on Elm Avenue, the Norman Transcript reported.

Not Your Average Joe, which also operates locations under the names ABE's and Stella Nova, employs people with disabilities alongside non-disabled workers. Herbel is listed in court records as both founder and executive director.

On tips, the department alleges Herbel personally decided how much each employee received and distributed cash in envelopes without records showing how amounts were calculated or which pay period they covered, according to News9. Some employees allegedly waited weeks or months to receive tips. Federal officials also allege the organization kept all credit card tips while distributing only cash tips, minus deductions for uniforms, aprons, licensing and credit card fees.

On wages, the lawsuit alleges the organization treated hours worked beyond 30 in a week as unpaid "volunteer time." The department also alleges employees were required to clock out for all breaks, including those shorter than 20 minutes, which it says caused some lower-paid workers to earn less than the federal minimum wage during certain pay periods.

The department alleges Not Your Average Joe directed minors under 18 to regularly operate industrial vertical dough mixers, equipment federal law prohibits young workers from using. At least one minor was allegedly directed to work more than three hours on a school day, KFOR reported. The complaint also alleges the organization solicited non-employee volunteers to perform unpaid work.

The lawsuit seeks unpaid wages, overtime compensation and tips for current and former employees dating back to at least Sept. 12, 2024. The department is also seeking an equal amount in liquidated damages and a court order barring future FLSA violations.

In a statement issued Tuesday, Sept. 15, Not Your Average Joe acknowledged that some tip distributions were delayed and that deductions from tips for business costs were not permitted under federal law. The organization said it had been in settlement discussions with the Labor Department before the suit was filed and that it intends to make employees whole for amounts owed. The statement also said the organization has brought on consultants and strengthened its payroll, timekeeping and tip systems.

The organization added that it plans to contest allegations it says do not reflect how its systems operated.

Herbel has not commented publicly. No next court date has been announced.