Deductions

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.

 

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.

The Real-Soprano’s “Bada Bing!” Strip Club Sued for Wage Law Violations

The New Jersey strip club used for Tony Soprano’s “Bada Bing!” club in the hit TV series “The Sopranos,” in addition to another club under the same owner, was hit with a class action lawsuit by its former employees. It is alleged that Satin Dolls and The Harem were illegally retaining private dancers’ tips and failing to pay them minimum wage by deducting “house fees” from their wages in violation of the Fair Labor Standards Act (“FLSA”) and New Jersey Wage Laws (“NJWL”).

The entertainers allege in their lawsuit that Satin Dolls and The Harem required customers to tip dancers during private or VIP dances. However, the dancers did not retain the entirety of their tips. For example, if a customer tipped $300 for a private dance, the strip club would retain approximately $150, even though customers believed that the dancers were keeping 100% of the tips. In addition, entertainers were required to share their tips with managers, including the “house mom”, the DJ, and security personnel through mandatory tipouts at the end of each shift.

The entertainer’s rights were also violated under the FLSA and NJWL due to the clubs’ policy requiring dancers to pay “fines,” “fees,” and “miscellaneous improper surcharges,” bringing their pay not only below the minimum wage, but to a negative wage. “House fees” collected prior to each shift would amount from $30-$80 depending on the night. Attorneys for the entertainers are seeking to recover unpaid wages, illegally retained tips, illegal deductions from wages, and other penalties from the respective clubs.

Happy National Waiters and Waitresses Day!

old school waiter photo

Today is National Waiters and Waitresses Day. To commemorate, check out this blog about the top ten wage violations in the restaurant industry written by waiterpay.com founder Louis Pechman, featured on the Huffington Post.

Banquet Hall Employees Sue the DoubleTree Hotel

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Banquet hall servers at the DoubleTree Hotel in Westchester, New York are suing for the hotel’s failure to pay minimum wages, overtime wages, spread-of-hours pay, unlawful deductions, and improper distribution of gratuities.

According to the collective action lawsuit filed in Manhattan federal court, DoubleTree waiters were not paid for the overtime hours they worked. Employees regularly worked more than 60 hours per week but were only paid for 40 hours a week. Additionally, according to the Complaint, the hotel retained service charge payments made by customers even though they reasonably believed that money would be distributed as gratuities for the workers.  Furthermore, DoubleTree failed to reimburse its staff for the laundering and maintenance of their uniforms.

The suit also alleges that employees did not receive the minimum wage and “spread of hours” pay required under the Federal Labor Standards Act (FLSA) and the New York Labor Law. Lawyers for the employees are seeking to recover their unpaid wages, liquidated damages and attorneys’ fees.

Delivery Workers at Papa John’s Sue For $2 Million in Unpaid Wages

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Five Papa John’s locations in New York have been accused of failing to pay its delivery workers the minimum wage, shaving hours from their pay, and requiring them to pay for bicycles and safety equipment used to do their jobs. The lawsuit brought by New York Attorney General Eric Schneiderman seeks to recover $2 million in damages for more than 400 delivery workers who were underpaid.

The lawsuit is the result of lengthy investigation by the Attorney General’s Labor Bureau that uncovered a multitude of wage violations by Papa Johns that included paying its delivery workers $5.00 an hour rather than the minimum wage of $7.25 at the time, shaving work hours by rounding down, improperly calculating overtime pay, requiring delivery workers to purchase bikes, helmets, locks, and chains at a cost of $500.00 a year, failing to pay spread of hours pay which is an additional hours of pay required when an employee worked more than 10 hours in a day, and not compensating for “call-in pay” which requires compensation for being called into work and then being sent home early.

In a press release on the filing of the lawsuit, Attorney General Schneiderman stated, “Nobody who works 40 hours a week should have to live in poverty.” He continued, “Like every other business in New York, fast-food employers must follow the law. My office will combat wage theft whenever and wherever we see it in order to protect the rights of hardworking New Yorkers, including pizza delivery workers and others who toil at fast-food restaurants.”

Texas Steakhouse Pays Texas Sized Settlement for Wage Theft Violations

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Big Texan Steak Ranch has agreed to pay $650,000 in minimum wage back wages and $150,000 in liquidated damages to 279 current and former wait staff following an investigation by the U.S. Department of Labor’s Wage and Hour Division, which found violations of the Fair Labor Standards Act’s minimum wage and record-keeping provisions. Violations stemmed from an illegal tip pooling arrangement by the restaurant, in which management dipped into the tips of the waiters, waitresses, and busboys of the restaurant

According to the DOL’s investigation, Big Texan illegally retained a portion of the restaurant workers’ tips to pay for business costs, such as menus, glassware, trays and contest prizes. The restaurant also made illegal deductions from workers’ paychecks for uniforms and withheld additional percentages of tips as a disciplinary tactic, bringing those workers’ hourly wages below the required federal minimum wage. Additionally, the company failed to maintain accurate time and payroll records.

The FLSA requires that covered, nonexempt employees be paid at least the federal minimum wage of $7.25 per hour for all hours worked, plus time and one-half their regular rates of pay for hours worked beyond 40 per week. In accordance with the FLSA, an employer of a tipped employee is required to pay no less than $2.13 an hour in direct wages, provided that amount plus the tips received equals at least the federal minimum wage of $7.25 an hour. If an employee’s tips combined with the employer’s direct wages do not equal the minimum wage, the employer must make up the difference. Employers are required to provide employees notice of the FLSA tip credit provisions, and to maintain accurate time and payroll records.

TGI Friday’s Hit With Lawsuit For Tip Theft, Minimum Wage, and Other Labor Law Violations

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TGI Friday’s was hit with a lawsuit by its servers for violations of state and federal wage payment laws.  According to the lawyers for the workers, which include current and former servers, bussers, runners, bartenders, barbacks, hosts, and other tipped workers, the restaurant chain faces a national class action lawsuit as a result of the alleged violations of workers’ rights.

The Complaint, which was filed in federal court by four former TGI Friday’s workers from the New York metro area, alleges that the restaurant required tipped workers to arrive at work before their scheduled start time and to stay at work after the restaurant closed without receiving the minimum wages and overtime to which they were entitled under the Fair Labor Standards Act (FLSA) and New York Labor Law (NYLL).

In addition, the workers allege that the restaurant shaved hours from employee time records and allowed employees to work off-the-clock to perform side work such as cleaning the restaurant, preparing food in bulk for customers, cutting produce, refilling condiments, and stocking and replenishing the bar and service areas.

The lawsuit seeks to recover minimum wages, overtime compensation, spread-of-hours pay, misappropriated tips, uniform-related expenses, unlawful deductions, and other wages for current and former workers at TGI Friday’s restaurants throughout the nation owned and/or operated by Carrollton, Texas-based Carlson Restaurants Inc., Carlson Restaurants Worldwide Inc., and TGI Friday’s Inc. nationwide.

Carnegie Deli Settles Worker Lawsuit for 2.65 Million Dollars

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A 2.65 million dollar settlement between the world famous Carnegie Deli and restaurant in midtown Manhattan and its workers has been preliminarily approved by a New York federal court judge.

The class action lawsuit filed by workers in 2012, alleged that Carnegie Deli failed to pay its waiters, bussers, runners, cashiers, and kitchen workers minimum and overtime wages and spread of hours pay.  In particular, attorneys for the restaurant workers alleged that the delicatessen and restaurant paid its employees at a rate below the minimum wage and paid straight-time for all hours, including those over forty, made unlawful deductions, such as deducting from a workers’ wages any money lost from undercharging a customer and engaged in other violations of the restaurant workers’ rights under the Fair Labor Standards Act and the New York Labor Law.

The settlement which covers over one hundred current and former employees of the Carnegie Deli, was preliminarily approved by Judge Katherine Polk Failla on April 11, 2014, and still requires final approval after the class members have the opportunity to object or opt-out of the settlement.  A final fairness hearing is scheduled for July 1, 2014.

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