Tag Archives: Fair Labor Standards Act

Servers at Le Cirque Sue For Minimum Wage and Overtime Violations

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A waiter at Le Cirque restaurant, recognized as one of the best restaurants in New York City, has filed a class action complaint in Manhattan federal court on behalf of all front of the house employees, other than captains, employed at the restaurant since September 17, 2008.

The lawsuit alleges that the restaurant violated the minimum wage provisions of the Fair Labor Standards Act and the New York Labor Law when it paid service employees a reduced tipped minimum wage rate without adhering to the laws’ requirements by which it could take the “tip credit.”  Attorneys for the workers claim that the restaurant should not have paid the workers the federal tipped minimum wage because the restaurant allowed captains, who were managerial employees, to share in the tips, and also failed to adequate notice of the tip credit to the service employees.

Under the Fair Labor Standards Act (“FLSA”), employers are allowed to take a “tip credit” and pay waiters, bussers, and bartenders below the federal minimum wage of $7.25 per hour. (Note: minimum wage in New York is now $8.00 per hour).  For example, the “tip credit” for waitstaff in New York is currently $3.00 per hour, meaning that waiters, busboys, and bartenders can be paid an hourly minimum wage of $5.00 per hour.  The Fair Labor Standards Act only allows employers to take this tip credit when the employees have been informed of the tip credit provisions of that law, and when the worker is allowed to retain all of the tips that he receives or is only required to share his tips with other workers who also customarily and regularly receive tips, such as servers, busboys, runners and bartenders.

The complaint against the restaurant alleges that the captains had authority to set schedules, discipline employees, grant or deny vacation requests, interview prospective employees, run pre-shift meetings, control station assignments, and recommend employees for hire, fire, and promotions.

The case against Le Cirque seeks back wages, penalties, and attorneys’ fees and costs.  This is the second lawsuit brought against Le Cirque for wage violations. Waiters who staffed private parties sued in 2009 over the restaurant’s retention of a mandatory service charge of as much as 20% paid on private parties.

Sushi Yasuda to Pay $2.4 Million to Settle Wage Claims

sushi yasuda

Sushi Yasuda, widely recognized as one of the best Japanese restaurants in New York, has settled a lawsuit for $2.4 million dollars according to a proposed settlement agreement filed in New York federal court.

The restaurant’s front of the house staff alleged that Sushi Yasuda violated the Federal Labor Standards Act (FLSA) and New York Labor Law by failing to pay employees for all the hours worked, unlawfully taking a “tip credit” and paying the employees less than the minimum wage, and failing to pay employees spread-of-hours pay when they worked more than ten hours in a day.

Sushi chefs, bussers and the waitstaff at the restaurant will receive a proportional share of the Settlement Fund based on the number of shifts they worked from December 3, 2006 to May 12, 2013.  According to the attorneys for the workers, over 100 employees will be covered by the settlement.

The restaurant recently received wide press coverage for its elimination of tips when owners decided to give customers an authentic Japanese dining experience by following the Japanese custom of not tipping.  The restaurant rolled out its policy on its bills and menus, which stated, “Following custom in Japan, Sushi Yasuda’s service staff are fully compensated by their salary.  Therefore gratuities are not accepted.  Thank you.”

Waiterpay Founder Featured on Brooklyn TV

Louis Pechman, the founder of Waiterpay, was a featured guest on BK Live’s June 2, 2014 segment on Tipped Wages.  The segment focused on pay issues in New York City restaurants, including concerns about the increase in lawsuits for illegal pay practices.  Among the topics discussed were the differences between minimum wage and tipped minimum wage, the complicated set of laws involving the tip credit, spread of hours, and other worker rights issues.

Food Network Celebrity Willie Degel Agrees to Pay $900,000 to Settle Wage and Hour Lawsuit

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Uncle Jack’s Steakhouse and its owner, Food Network Celebrity Willie Degel, will pay $900,000 to settle a wage theft lawsuit filed against its restaurants located in Bayside, Queens and Midtown, New York City.  Ironically, Degel was featured on Food Network’s Restaurant Stakeout, a show which followed Degel as he visited restaurants across the country with hidden cameras to capture their food service problems and attempted to fix them.

On May 22, 2014, Judge Loretta Preska, Chief United States District Court Judge in the Southern District of New York, approved a $900,000 settlement between the restaurants and its workers, who alleged that their worker rights were violated by the restaurant.  Approximately 239 restaurant workers who worked between September 2002 and September 2008 at the New York City and Queens restaurants are expected to benefit from the settlement.

The lawsuit, which was filed in 2008 by captains, waiters, runners, bussers, and bartenders, alleged that the restaurants failed to pay them at the legally required minimum wage, routinely shaved their hours when they worked over 40 hours and refused to pay them overtime wages for hours worked over 40, misappropriated gratuities belonging to the waitstaff, failed to pay spread of hours pay when the employees’ workdays exceeded ten hours, and refused to pay for employee uniforms or laundering of such uniforms.

Peter Luger’s Steakhouse Settles Wage Lawsuit for $250,000

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Workers at Peter Luger’s, recognized by Zagat’s as the best steakhouse in New York, has agreed to a $250,000 settlement to resolve claims made against the Long Island location of the steakhouse for Fair Labor Standards Act (FLSA) and New York labor law violations, according to papers filed with the court.

Restaurant employees initially filed a complaint against the steakhouse in March 2013, alleging that the restaurant failed to pay them for all hours worked, specifically that the restaurant violated its workers’ rights by failing to pay proper overtime and minimum wages and spread-of-hours pay, and by maintaining an illegal tip pool.  The Complaint alleged that the management deducted $20.00 from the tip pool every day, which would then be given to the kitchen staff at the end of the year.

The workers have asked the Judge Wexler to approve the settlement and certify the proposed class, which would cover 62 employees who worked at the restaurant’s Great Neck location as servers, waitstaff, waiters, and bartenders.

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.

Cooks and Dishwashers at Planet Wings Sue For Minimum Wage and Overtime Pay

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Cooks and dishwashers have sued Planet Wings restaurants located in New York for minimum wage, overtime, and spread of hours violations.  According to the Complaint filed by attorneys for the workers in New York federal court, the popular wings restaurant paid its employees a weekly salary of $480 per week for 75 hours of work, which equaled an hourly rate below the minimum wage rate required by law, and failed to pay for overtime hours worked over 40.

Fresh Direct Delivery Workers Sue for Unpaid Wages, Overtime, and Gratuities

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Delivery workers for Fresh Direct, an online food and grocery retailer, have sued for unpaid wages and violations of the overtime provisions of the Fair Labor Standards Act (“FLSA”) and New York Labor Law.  According to the Complaint filed in Manhattan federal court by the delivery workers, Fresh Direct misled its customers in believing that the delivery charge it imposes on customers is a gratuity.  Attorneys for the delivery workers claim that the company’s acceptance and retention of gratuities belonging to the delivery workers violate the New York Labor Law.

TGI Friday’s Settles Waiter Lawsuit for $2.8 Million Dollars

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A $2.856 million dollar settlement between ten TGI Friday’s restaurants in New York owned by the Riese Organization, and its waitstaff, has been approved by a New York federal court judge.

The class action lawsuit, which was filed by the workers in 2012, alleged that TGI Friday’s failed to properly pay its tipped workers, including its servers, bussers, runners, bartenders, and barbacks.  In particular, the restaurant workers alleged that the restaurants did not pay their employees minimum wage or proper overtime compensation, failed to pay spread-of-hours pay or call-in pay, made unlawful deductions, encouraged workers to work “off the clock” when performing side-work, and engaged in other violations of the restaurant workers’ rights under the Fair Labor Standards Act and the New York Labor Law.

This settlement, which was approved by Judge Richard Sullivan on March 7, 2014, will provide back pay and damages for waiters, waitresses, and other waitstaff who worked between November 20, 2006 through June 30, 2013 at the TGI Friday’s restaurants in Manhattan.  Approximately 2,600 employees are covered by the settlement.

McDonald’s Restaurants Sued for Wage Theft

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McDonald’s was hit with seven lawsuits by workers in California, Michigan, and New York, who claimed that the company and some franchise owners failed to pay the employees for all hours worked, failed to pay them overtime, shaved their hours from their time cards, and ordered them to work “off the clock.”

In California, lawsuits were filed against area restaurants, including one filed against 100 McDonald’s owned and operated by the company itself.  In Michigan, attorneys for the workers allege that fast food restaurants told their employees to show up for work, but only paid them after having them wait an hour or two for more customers to arrive.  The New York lawsuit alleges that McDonald’s failed to reimburse its staff for the laundering and maintenance of their uniforms, or the time spent doing so, even though the restaurant provided them with only one uniform and required a clean uniform to be worn each day.  Because of these and other worker rights violations, the lawyers for the restaurant workers are seeking reimbursement for unpaid wages, liquidated damages, and other relief.

These lawsuits come on the heels of several strikes organized in New York to pressure McDonald’s and other fast-food restaurants to increase the minimum wage.