Restaurant Workers

World-renowned Chef and Restauranteur David Bouley Sued for Tip Credit Wage Violations

Bouley front of restaurant minimum wage

A former restaurant worker at three of David Bouley’s New York City restaurants and event spaces claims the world-famous Bouley institutions failed to pay tipped restaurant employees minimum wage and overtime pay in violation of the Fair Labor Standards Act (“FLSA”) and the New York Labor Law.

The worker, who was employed as a runner at Bouley Restaurant, Bouley Test Kitchen, and Bouley Botanical from June 2010 to September 2016, also alleges that the restaurants required workers to pay to clean and maintain their uniforms out of their own pockets, and failed to provide workers with a pay notice or accurate wage statements, in violation of the New York Labor Law.

In the collective and class action lawsuit, filed in federal court in the Southern District of New York, the runner asserts that the Bouley restaurants paid tipped employees, including captains, servers, front waiters, assistants, bussers, runners, and baristas at the tipped minimum wage, currently $7.50 in per hour in New York, while requiring them to share their tips with non-service employees.  Specifically, the runner claims the Bouley restaurants permitted expediters, who are back of house employees with little to no direct customer interaction, to participate in the tip pool.  He also says the restaurant never gave the tipped workers notice of its intent to use the tip credit provision.

According to the FLSA, employers can take a “tip credit” and pay tipped employees below the federal minimum wage.  The United States Department of Labor regulations provide, however, that a restaurant will not qualify for the “tip credit” when tipped employees share tips with non-tipped workers who do not customarily and regularly receive tips, or when tipped workers do not receive notice of an employer’s intent to claim the tip credit.

 

 

Another Fast Food Restaurant Hit with an Overtime Pay Lawsuit

fast food french fries

An Arby’s fast food restaurant in Vero Beach, Florida cheated workers out of  overtime pay, according to a lawsuit filed by a former cashier at the restaurant.  Attorneys for the employee claim that Arby’s paid workers at the restaurant straight-time wages for all hours worked, including hours worked over forty per workweek, in violation of the Fair Labor Standards Act (FLSA).

The primary duties of the worker who brought the lawsuit consisted of tasks such as serving as cashier, assisting customers with their orders, food preparation and cleaning.  She regularly worked approximately 55 hours per week, but Arby’s failed to pay her time and one-half her regular rate of $9 per hour for all hours worked over forty.  Instead, they paid her a straight-time wage of $9 for hours over 40 in a week.  Attorneys for the workers are seeking to recover unpaid overtime wages for the workers at the restaurant, liquidated damages, and attorneys’ fees.

Fast food restaurants across the country have been hit with overtime lawsuits because they either pay employees a weekly salary, pay shift pay, or pay hours worked after 40 on a straight-time basis.  For example, the United States Department of Labor (DOL) found that Subway restaurants throughout the United States committed wage violations in more than 1,100 investigations over the period from 2000 to 2013.  Combined, these investigations led to Subway franchisees reimbursing Subway workers more than $3.8 million.  According to CNN, after Subway, the next most frequent wage violators in the fast food industry are McDonald’s and Dunkin’ Donuts.

Pechman Law Group recently settled overtime cases for a worker at a 7-Eleven on Long Island for $60,000, two restaurant workers at Oaxaca Taqueria Restaurants in Manhattan for $82,500, and a Dunkin’ Donuts worker in Queens for $30,000.  Under the FLSA, employees must receive overtime pay for hours worked over 40 in a workweek at a rate of at least one and a half times their regular rate of pay.

 

 

 

Kitchen Workers Accuse Serafina Restaurant of Wage Theft

serafina round logo

Serafina, an Italian restaurant chain operating eleven restaurants in New York State, allegedly failed to pay kitchen workers overtime pay for all weekly hours worked over forty, spread-of-hours pay, and other wages.  The kitchen workers, including cooks, non-executive chefs, sous-chefs, porters, and dishwashers, claim that Serafina required them to regularly work more than forty hours each week but did not pay them time-and-a-half for all of their hours over forty.  The kitchen workers say that the restaurant paid some workers a fixed salary regardless of the number of hours they actually worked.  For example, one sous-chef was paid $1,100 per week for working up to eighty-four hours a week.

The lawsuit claims that while Serafina did pay some kitchen workers hourly wages, the restaurant shaved their overtime hours.  For example, a cook alleges that Serafina only paid him for forty-eight hours of work each week, despite actually working sixty hours a week.  The workers claim that Serafina paid all kitchen workers for fewer overtime hours than they actually worked each week due to time shaving.  The workers further allege they were never given wage notices required under the New York Labor Law and that their paystubs contained inaccurate information concerning their hours worked.

Serafina previously agreed to settle another wage theft lawsuit with former servers, runners, bartenders, bussers, and baristas for $1.275 million.

Opening A Restaurant in New York: Legal Issue Boot Camp

New York City Bar Association Logo

The New York City Bar Association will hold the CLE program “Opening A Restaurant in New York: Legal Issue Boot Camp” on March 24. The program will focus on the corporate, real estate, liquor license, and labor/employment issues involved in opening a restaurant in New York City. Speakers on the panel include Jack Gordon, partner at Kent, Beatty & Gordon LLP; Carolyn Richmond, partner at Fox Rothschild LLP; Sonal Shah, General Counsel of Ark Restaurant Group; Alex Victor, partner at Davidoff, Hutcher & Citron LLP; and Larry A. Welch, Associate at Golenbock Eiseman Assor Bell & Peskoe LLP.  Lou Pechman will be chairing the event. For more information on the program please visit the event page.

Joe Allen, Broadway Restaurant Hit with Class Action Wage Theft Lawsuit

Joe Allen Restaurante Front

A class action lawsuit claims that Joe Allen Restaurant (“Joe Allen”), a popular Broadway pre-show eatery located in Manhattan, failed to pay its restaurant workers minimum and overtime wages. The employee who brought the lawsuit alleges that Joe Allen did not keep track of the hours its employees actually worked, instead paying them only for their scheduled hours. The same employee alleges Joe Allen paid workers the tipped minimum wage without giving employees proper notice of the tip credit, and also forced tipped workers to share their tips with employees not entitled to tips, such as a porter.

The named employee, who worked as a server and bartender, claims that Joe Allen sometimes required him to arrive at 10:30 a.m. for lunch shifts, complete his non-tipped work, and then purposefully sent him home at about 12:00 p.m. before his scheduled lunch shift started, without paying him a penny. He also adds that he often “picked up” dinner shifts from other employees, which brought his weekly hours over 40, but never received overtime while employed at Joe Allen.

Maine Fish Market to Pay $750,000 in Back Wage to Employees

Maine Fish Market Restaurante Logo

Maine Fish Market, a popular seafood restaurant in East Windsor, Connecticut, paid $750,000 in back wages to approximately 70 employees for unpaid wages and tip theft violations. The class action lawsuit alleged that Maine Fish Market neglected to pay the federal minimum wage to its servers and bartenders and failed to pay overtime wages to the restaurant’s kitchen workers. In addition, servers claim they were unlawfully required to pay for breakages, customer walkouts, and uniforms. The restaurant also took ten to fifteen percent of each servers’ tips on a daily basis and allegedly used this money to pay other employees’ wages. As per the Fair Labor Standards Act and the Connecticut Minimum Wage Act, employers are not entitled to any of the tips earned by servers.

The employees were represented by Louis Pechman and Laura Rodriguez of Pechman Law Group PLLC, as well as by William Madsen of Madsen, Prestley & Parenteau LLC.

Bistro owners mocked workers and stiffed them on pay according to lawsuit

New York Post Logo

The New York Post has reported that Le Rivage, an iconic French restaurant in midtown Manhattan, is being sued by its servers for age discrimination and minimum wage, overtime, and tip violations.  The servers in this case are represented by Laura Rodriguez and Louis Pechman, founder of waiterpay.com.

Golden Corral Sued By Assistant Managers For Overtime Pay

Golden Corral logo

Golden Corral restaurants throughout the United States misclassified “Kitchen Associate Managers,” and “Hospitality Managers,” as employees exempt from overtime, failing to pay them any overtime wages for hours they worked over forty in a given workweek. According to the restaurant workers, Golden Corral refused to pay them overtime in spite of the fact that they spent the majority of their time performing the same duties that non-exempt restaurant employees performed, including cooking and preparing food, taking out trash, washing dishware and glassware, refilling food on the buffet line, unpacking products and supplies, cleaning the restaurant, and serving customers. The lawsuit claims that Golden Corral applied the same compensation and employment policies to Assistant Managers at 94 restaurants across the country.

The workers also claim that Golden Corral willfully misclassified them as exempt workers ineligible for overtime pay, and was aware that Associate Managers across the country worked more than 40 hours a week without overtime compensation. The lawsuit alleges that Golden Corral failed to record all of the time that its employees worked and purposefully did not require workers to clock in or out or otherwise record their time in any way. Further, the Assistant Managers’ work hours were not recorded on their paystubs.

Reichenbach Hall Sued for Wage Violations

Reichenbach Hall Logo

A wage theft lawsuit has been filed against Reichenbach Hall, a German beer hall located in midtown Manhattan. The lawsuit charges that the restaurant cheated its waiters and waitresses out of minimum wage and overtime pay. The servers claim that Reichenbach Hall charged them for customer walkouts and for uniforms. The waitstaff also allege that Reichenbach Hall paid them the “tipped minimum wage” without giving prior notice and forced them to share their tips with managers and back of house employees as part of an unlawful tip pool.

 

 

Restaurant Workers Get 2017 Pay Hike

back of house cooks

On December 31, 2016, restaurant workers throughout New York State will begin to see changes in the payment structure of their wages.
Back of the House Workers

 

Back of the house workers (cooks, dishwashers, stockers, and others without direct customer contact) will receive an increase from the current minimum wage rate of $9.00/hour beginning December 31, 2016, according to the following specifications:

New York City – Large Employers (with 11 or more employees): $11.00
New York City – Small Employers (with 10 or fewer employees): $10.50
Long Island & Westchester: $10.00
Remainder of New York State: $9.70

 

Front of the House Workers

 

New York State law allows employers in all industries, except building service and fast food, to satisfy payment of the minimum wage by combining a “cash wage” paid by the employer with a credit or allowance for tips that the employee receives from customers. For example, employers in the Hospitality Industry could satisfy the 2016 minimum wage of $9.00 by combining a cash wage of at least $7.50 with a tip allowance of no less than $1.50 per hour. Employers need only pay a cash wage of $7.50/hour to workers, so long as the employees receive at least $1.50/hour from customers in tips.

 

Beginning on December 31, 2016, tipped front of the house restaurant workers (servers, bussers, bartenders, hosts, hostesses, and others with direct customer contact) will still be required to receive the same 2016 minimum hourly wage rate of $7.50/hour from their employers. However, as of December 31, 2016, tipped restaurant workers must receive at least the following amount in tips per hour in order for employers to use the tip credit:

 

New York City – Large Employers (with 11 or more employees): $3.50
New York City – Small Employers (with 10 or fewer employees): $3.00
Long Island & Westchester: $2.50
Remainder of New York State: $2.20

 


Fast Food Workers

 

Additionally, restaurant workers in the fast food industry will see an increase in hourly wage rates. Employees who qualify for this increase include any person working at a fast food establishment whose job duties include at least one of the following: customer service, cooking, food or drink preparation, delivery, security, stocking supplies or equipment, cleaning, or routine maintenance.

 

On December 31, 2016, the minimum hourly wage rates for all fast food workers will increase according to the following specifications:

 

New York City: $12.00
Rest of the State: $10.75

 

For more information about your rights as a restaurant worker, take a look at our Top 10 Restaurant Pay Violations.

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