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Dimora Ristorante Pays Waiter $60,000 in a Wage Violations Settlement

Dimmora Ristorante pays a Waiter $60,000 in a Wage Violations Settlement

Dimora Ristorante, an Italian restaurant in Norwood, New Jersey, has paid $60,000 to a former waiter to settle a wage violations lawsuit for unpaid minimum and overtime wages and tip theft.  The waiter argued that Dimora unlawfully required all front-of-the-house tipped employees, such as waiters and bussers, to pool their tips and share portions of them with two of the restaurants’ managers.

Under the FLSA, a restaurant can require front-of-the-house employees to pool and share their tips.  However, the restaurant violates the FLSA if managers participate in the tip pool.  Only non-managerial tipped employees can participate in the tip pool.  If a restaurant violates this rule, it loses the tip credit, which is the privilege of paying front-of-the-house tipped employees at a reduced hourly wage rate.  If this happens, the restaurant must pay back the tipped employees the tip credit, i.e., the difference between the full minimum wage rate and whatever reduced amount it paid them (which cannot be lower than $2.13 in New Jersey).

This is what the waiter argued against Dimora.  According to the waiter, Dimora required him to share portions of his tips with two managers who hired, fired, interviewed, directed the duties, and set the work schedules of tipped employees.  Because of this violation of the FLSA, the waiter claimed that the restaurant should not have paid him at the reduced wage rate of $2.90 per hour.  He argued that because Dimora violated the FLSA, it should have paid him the full minimum wage rate of $8.38 in effect in 2016 in New Jersey.  In other words, the waiter claimed he was owed the tip credit of $5.48 (i.e., the difference between $8.38 and $2.90) per hour worked up to 40 per workweek.  The waiter also claimed that the restaurant failed to pay him any wages at all for hours worked over forty per workweek.

The waiter was represented by Louis Pechman and Gianfranco Cuadra of Pechman Law Group PLLC.

TGI Friday’s Settles Wage Theft Case for $19.1 Million

TGI Friday's Wage theft lawsuit

A nationwide wage theft lawsuit against TGI Friday’s has been settled for $19.1 million according to a court filing by the workers’ attorneys in New York federal court. The settlement, which covers 28,000 restaurant workers, is a record amount for resolution of a wage theft lawsuit in the restaurant industry. This settlement is the latest example of fast casual restaurants across the United States paying out millions of dollars on wage theft cases.

The lawsuit alleged that TGI Friday’s failed to pay its tipped hourly food service workers the proper minimum wage, overtime pay, and misappropriated tips. Attorneys for the servers, bussers, runners, bartenders, barbacks and hosts, claimed that TGI Friday’s failed to satisfy the strict requirements under the Fair Labor Standards Act (“FLSA”) and the New York Labor Law (“NYLL”) that would allow them to pay a reduced minimum wage rate to tipped employees. In particular, TGI Friday’s had a policy and practice that required tipped employees to spend over two hours and/or in excess of 20% of their work shift performing non-tip producing “side work.” Side work included, general cleaning of the restaurant, preparing food in bulk for customers, cutting produce, refilling condiments, and stocking and replenishing the bar and service areas. According to attorneys for the workers, this practice violated the “80/20 rule” and TGI Friday’s should have paid the tipped employees the full minimum wage rate, rather than reduced tipped minimum wage rate.

The front of the house workers also alleged that TGI Friday’s required them to perform “off the clock” work for which they were never compensated. “Off the clock” work consisted of requiring them to arrive at the restaurant one hour before customer service to perform side work, requiring them to punch in after they got their first table, and punch out before they performed closing side work. As a result of these practices, workers were not compensated for all the hours they worked and when they worked over forty hours per workweek, they were not paid overtime pay. Furthermore, the lawsuit claimed that TGI Friday’s required tips to be distributed to employees who are not entitled to tips under the FLSA and/or NYLL such as, silverware rollers and expeditors. Additionally, workers were given only one uniform, which TGI Friday’s failed to launder or pay workers the statutory uniform allowance. Finally, TGI Friday’s was accused of making unlawful deductions from employee wages for customer walkouts.

If approved, the settlement would resolve a nationwide class action brought by more than a dozen workers, alleging violations of the FLSA and claims brought under the labor or unfair competition laws of nine states: California, Colorado, Connecticut, Florida, Illinois, Maryland, Michigan, New Jersey and New York.

 

Jessica Biel’s Restaurant Hit with $430k Wage Theft Lawsuit

Au Fudge gratuities Jessica Biel

Au Fudge, an upscale Los Angeles restaurant owned by actress Jessica Biel, was hit with a wage theft lawsuit claiming the restaurant withheld over $430,000 in tips from staff during events.   Described by the Los Angeles Times as an “organic, kid-friendly restaurant,” Au Fudge serves fine food and drinks and offers creative spaces for children’s activities, as well as au pair services.  Biel and her business partners are sued by several former employees including a former server, server assistant, au pair, bartender, runner, host and event director for gratuities and rest and meal break pay.

Au Fudge frequently hosted private events for big companies including Amazon, Netflix, and Fox Studios where the event contracts included an automatic 22 percent gratuity.  In their lawsuit, the former employees claimed that whenever there was a private event at Au Fudge, the restaurant led customers to believe that the “gratuity” fee that they paid was a tip that would be distributed to the waitstaff.  According to the workers, Au Fudge unlawfully pocketed all the gratuity fees that customers paid, even though those amounts should have been given to the waitstaff as tips. The complaint also alleges that employees were not paid for rest and meal breaks under California Law.

Attorneys for the workers are seeking unpaid wages, tip disgorgement, liquidated damages, and attorneys’ fees.

 

 

 

Los Angeles Restaurant Sued by EEOC For Pregnancy Discrimination

EEOC Pregnancy Discrimination LA Louisanne

LA Louisanne, a popular Los Angeles restaurant and jazz night club, fired an employee because of her pregnancy, according to a discrimination lawsuit filed by the U.S. Equal Employment Opportunity Commission (EEOC). According to the EEOC’s discrimination lawsuit, the restaurant cut a pregnant server’s hours after she announced she was pregnant and refused to let her return to work after she gave birth. The EEOC alleges that other employees at the restaurant have also been subject to discrimination because of their pregnancies.

Pregnancy discrimination violates Title VII of the Civil Rights Act of 1964, as amended by the Pregnancy Discrimination Act. The EEOC’s discrimination lawsuit seeks back pay, compensatory and punitive damages for the female employee and a class of similarly affected employees, as well as relief intended to prevent further discrimination at the restaurant.

Employment attorneys for the EEOC’s said, “employers should be cognizant of their obligations under the law to maintain a workplace free of discrimination against employees who are expectant mothers. Women should not have to choose between their job or having children. Employers need to be aware that the EEOC takes pregnancy discrimination seriously and the agency will continue to protect the rights of pregnant employees.”

Ruby Tuesday Restaurant in Times Square Sued by Bartender for Wage Theft

Ruby Tuesday Lawsuit Tips Hours Bartender

Ruby Tuesday’s Times Square location was sued for wage theft by a former bartender, Amanda Zarfos, who alleges that the restaurant failed to pay tipped employees for all hours worked and violated the so called 80/20 rule.

The lawsuit, filed in New York federal court, claims that during her employment at Ruby Tuesdays, servers and bartenders at Ruby Tuesday were improperly paid at the tipped minimum wage  rate for all hours worked even though they spent more than 20 percent of her shifts performing work that involved no customer interaction and did not generate tips.  For example, Zarfos was required to brew beverages, cut lemons, bake bread, help pack to-go orders, and wipe wood.  According to the Department of Labor’s Field Operations Handbook,

The FLSA permits the employer to take a tip credit for time spent in duties related to the tipped occupation of an employee, even though such duties, are not by themselves directed toward producing tips, provided such related duties are incidental to the regular duties of the tipped employees and are generally assigned to the tipped employee. For example, duties related to the tipped occupation may include a server who does preparatory or closing activities, rolls silverware and fills salt and pepper shakers while the restaurant is open, cleans and sets tables, makes coffee, and occasionally washes dishes or glasses.  However, where the facts indicate that tipped employees spend a substantial amount of time (in excess of 20 percent of the hours worked in the tipped occupation in the workweek) performing such related duties, no tip credit may be taken for the time spent in those duties. All related duties count toward the 20 percent tolerance.

Similarly, the New York Labor law has an analogous prohibition covering non-tipped work exceeding 20 percent of a shift.

Attorneys for the restaurant workers also claim that tipped employees were required to work off-the-clock without pay. The lawsuit claims that employees were not allowed to clock in despite the restaurant knowing and expecting them to start working.  Willful refusal to pay employees wages for off-the-clock work is a violation of the Fair Labor Standards Act and the New York Labor Law.

Indian Restaurant Ordered to Pay $1.4 million to Five Restaurant Workers for Wage Violations

Indus Valley wage violations

Indus Valley Restaurant, an Indian restaurant on the Upper West Side, has been ordered by a New York Judge to pay $1.4 million in back pay and damages to five former restaurant workers for wage violations.

Indus Valley, now closed, was accused by the workers of failing to pay minimum wage, overtime, and spread of hours pay as required by the Fair Labor Standards Act and New York Labor Law. The workers who sued the restaurant included two cooks, a food runner, a waiter, and a busboy. The workers, who regularly worked up to seventy-two hours per week, were each paid a fixed weekly salary, rather than an hourly wage. They did not receive overtime payment when they worked over forty hours in a workweek.  Three of the employees are also owed unpaid minimum wages.

The decision follows an inquest at which the employees gave sworn testimony about their weekly schedules and payments from Indus Valley.  The owners failed to appear and were held in default by the Court.  Indus Valley is ordered to pay $1,412,318.66 plus interest, for unpaid wages, liquidated and statutory damages. Laura Rodriguez, an associate at Pechman Law Group, was lead attorney on this case.

Rosa Mexicano Reaches $3.6 Million Settlement with Servers for Tip Violations and Overtime

rosa mexicano overtime pay lawsuit tip theft

Rosa Mexicano has agreed to pay $3.6 million to settle a nationwide class action lawsuit alleging that the upscale Mexican restaurant chain failed to pay its waitstaff minimum and overtime wages and misappropriated tips.  The settlement agreement covers an estimated 3,500 employees at twelve locations in New York, New Jersey, Los Angeles, San Francisco, Miami, Boston, Atlanta, Washington D.C., Baltimore, and Minneapolis.

The restaurant workers filed the lawsuit suit in New York federal court in July of 2016, arguing Rosa Mexicano claimed an invalid tip credit and improperly paid their waitstaff at a tipped minimum wage instead of the full minimum wage. The waitstaff claims in their lawsuit that Rosa Mexicano did not inform them they would be paid at tipped minimum wage and misappropriated their tips, violating the Fair Labor Standards Act (“FLSA”) and the New York Labor Law (“NYLL”). Tips were shared with “floaters”, who conducted miscellaneous tasks around the restaurant without ever having customer contact. According to the lawsuit, these “floaters” were not entitled to sharing in a tip pool, invalidating Rosa Mexicano’s tip credit.  The wage theft lawsuit also claimed that Rosa Mexicano did not pay waitstaff for hours worked over forty per week. Some former servers claimed to work up to 50 hours per week without receiving overtime pay. The lawsuit also alleges that waitresses, waiters, bussers, and bartenders did not receive “call-in pay” required under NYLL, when they reported for work only to be sent home before being able to work three hours. One of the former workers claims this happened on 146 shifts.  For these violations, the employees sought to recover unpaid minimum wages, unpaid overtime wages, unpaid “call-in pay”, liquidated damages and attorneys’ fees.

The attorneys for the restaurant workers are Fitapelli & Schaffer, a New York law firm. The settlement is subject to approval by United States Magistrate Judge Ronald L. Ellis.

 

 

Maroni Restaurant Settles Cook’s Overtime Pay Lawsuit for $110k

Maroni overtime pay lawsuit

Renowned Long Island restaurant, Maroni Cuisine, has agreed to pay $110,000 to settle a lawsuit alleging that the restaurant did not pay a cook overtime pay, in violation of the Fair Labor Standards Act (“FLSA”) and the New York Labor Law (“NYLL”).  Maroni, notable for its exceptional meatballs, was voted the second best restaurant on Long Island by Zagat, and was also featured on “Throwdown with Bobby Flay.”

The cook who brought the lawsuit alleged that he was required to work approximately fifty-two hours per week, and was misclassified as an exempt employee and paid a weekly salary contrary to the Fair Labor Standards Act and the New York Labor Law.  The FLSA and NYLL provide that only employees who fit within the administrative, executive, or professional exemption qualify as exempt from the overtime laws, and all other employees must be paid overtime pay for hours worked over forty.

Vivianna Morales, an attorney with Pechman Law Group, was the lead attorney on behalf of the worker at Maroni.

Sonic Drive In Gets Department of Labor Help to Stop Wage Theft

sonic drive in wage theft

The U.S. Department of Labor and Sonic Drive In, the nation’s largest drive-in restaurant chain have signed a voluntary agreement to help Sonic’s 3,000+ drive in franchise locations comply with federal labor laws. Sonic has been one of a number of fast food restaurants that have been hit with wage theft lawsuits complaining that workers have had their time shaved, did not get overtime after 40 hours, and were required to work “off the clock.”

The Department of Labor announced, “We encourage other franchisors to follow Sonic’s example and take similar steps to benefit their franchises’ employees and owners by complying with the law… Abiding by the law makes better business sense than facing the prospect of paying back wages, damages, and penalties for violations of the Fair Labor Standards Act.”

The Department of Labor will provide easy-to-use compliance assistance tools designed for the franchise restaurant industry. The package will include video and online training, educational articles for use in internal company publications, and sample training materials for use in company staff meetings. The Department of Labor will also make representatives available to provide training and labor law compliance assistance to Sonic franchisees.

The Fair Labor Standards Act requires that fast food workers be paid at least the federal minimum wage of $7.25 per hour (note that New York has a higher minimum wage) as well as time-and-one-half their regular rates for every hour they work beyond 40 per week. Fast food restaurants and many chain restaurants have been sued recently for violating workers’ rights by failing to pay overtime and by forcing employees to work “off the clock.”

 

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