Servers at Pennsylvania locations of Red Robin restaurants have settled their tip theft lawsuit for $1,300,000, according to a settlement agreement filed in Pennsylvania federal court.
The employees alleged that the restaurant chain, known for its hamburgers, violated the Fair Labor Standard Act (“FLSA”) and the Pennsylvania Minimum Wage Act by requiring waiters and waitresses to share their tips with expediters, who they allege are non-tipped employees. Employers are legally permitted to create a tip-pooling or tip sharing arrangement among employees who customarily and regularly receive tips, but a valid tip pool may not include employees who do not customarily and regularly receive tips.
The $1.3 Million settlement fund will be distributed among Red Robin restaurant workers based on the number of hours they worked between February 10, 2011 and January 30, 2013. The settlement agreement between Red Robin and the restaurant workers was preliminarily approved by Judge James M. Munley of the Middle District of Pennsylvania.