T.G.I. Friday’s has settled a wage theft claim by agreeing to pay $225,682.97 to nine former employees. The waiters, waitresses, and busboys who sued the popular restaurant chain claim that the restaurants violated labor laws by paying its servers for less hours than they actually worked and applied a tip credit toward workers’ wages without properly notifying them of the Fair Labor Standards Act (“FLSA”) tip credit provisions. The restaurant workers also allege that they were unlawfully required to share their tips with non-tipped employees, like expeditors and silverware rollers. Also, employees did not receive overtime pay for hours worked over forty.
The settlement agreements between T.G.I. Friday’s and the restaurant workers were submitted to New York Federal Court Judge Analisa Torres for approval.