Federal lawsuit targets Oklahoma nonprofit coffee shop chain over labor law violations

BROKEN ARROW, Okla. — A federal lawsuit filed in the U.S. District Court for the Western District of Oklahoma is targeting Not Your Average Joe, Inc., a nonprofit coffee shop chain with a location in Broken Arrow, and its founder and Executive Director Tim Herbel.

The complaint, filed by Keith E. Sonderling, Acting Secretary of Labor for the U.S. Department of Labor, alleges multiple violations of the Fair Labor Standards Act. The lawsuit covers the period from September 12, 2023, through the date of trial and lists more than 320 affected employees.

The allegations include:

• Keeping employee tips, withholding portions for business expenses, and failing to properly distribute credit card tips
• Requiring employees to clock out for short breaks and designating work time as "volunteer time" to avoid paying minimum wages
• Treating hours over 40 per week as unpaid "volunteer time" rather than paying overtime
• Having minors operate dangerous equipment and work excessive hours
• Failing to maintain proper wage and hour records

The Secretary of Labor is seeking injunctions, back wages, tips, damages, and record-keeping enforcement, and the complaint emphasizes willful violations.

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Not Your Average Joe operates coffee shops under multiple names, including "Not Your Average Joe," "ABE's," and "Stella Nova," across the Oklahoma City metro area and surrounding communities in addition to its Broken Arrow location. The organization describes itself as one of Oklahoma's most impactful nonprofits, employing hundreds of people with special needs.

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Herbel disputes the government's characterization of the company's practices and says the organization has been in settlement talks with the Department of Labor.

"We try to do everything right but occasionally you get a few things wrong, but never intentionally," Herbel said.

Herbel acknowledges procedural errors were made but says they have been corrected. He says tip allocations were calculated using spreadsheets based on hours worked and handled by multiple people over the years.

"We've changed all those things to match what the Department of Labor wants we want to be good citizens there but we have never purposely withheld tips from anybody," Herbel said.

Herbel told 2 News Oklahoma the minors operating dangerous machinery allegation stems from Spring Break campers under 18 standing too close to a stand mixer operated by a chef — not minors operating the equipment themselves. He views the U.S. Labor Department's $68,000 fine related to that incident as excessive.

"We want a resolution with them. We know they're trying to make sure we're compliant and we've been compliant now for months and months and months but we just couldn't come to what we felt was fair ... we felt a $68,000 fine for that mixer was onerous," Herbel said.

In a press release dated September 15, 2026, Not Your Average Joe said it is committed to making employees whole for any amounts legitimately owed and plans to implement stronger systems for payroll, timekeeping, tip distribution, record-keeping, training, and equipment controls. The organization says it wants to continue operating normally while resolving the compliance issues.

The federal case is ongoing.

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