Twenty Percent Rule for Tip Credit is Key Issue in Lawsuit By Applebee’s Waiters and Bartenders

Under the Fair Labor Standards Act (“FLSA”), employers are allowed to take a “tip credit” and pay waiters, bussers, and bartenders below the federal minimum wage of $7.25 per hour.  For example, the “tip credit” for waitstaff in New York is ...

Lawsuit by Outback Steakhouse Waiters and Bartenders Allowed to Proceed as Both Class Action and Collective Action

In Ervin v. OS Restaurant Services, a group of waiters and bartenders at Outback Steakhouse in Calumet City, Illinois brought a lawsuit to recover improperly withheld wages and tips.  Specifically, the workers argued that Outback Steakhouse violated the minimum wage and maximum hour ...