Tag Archives: Restaurant workers

New York City’s Gramercy Tavern Will Pay $695,000 to Restaurant Workers for Wage Theft

Gramercy Tavern

Gramercy Tavern, the popular Danny Meyer-owned upscale eatery located in New York City’s Flatiron District has agreed to pay $695,000 to current and former restaurant workers for wage theft violations, including an allegedly illegal tip pool and failure to pay workers the minimum wage.  The lawsuit, brought by two former bussers, claims Gramercy Tavern engaged in unlawful tip pooling practices by requiring service employees, such as service staff, bussers, runners, captains, and other service workers to share their tips with non-service employees. According to the lawsuit, these non-service employees included expeditors, silverware polishers, wine managers, and other workers who did not regularly and customarily interact with customers.

The bussers had claimed Gramercy Tavern used a tip credit to pay its workers at the tipped minimum wage, despite retaining a portion of the tips shared by employees and requiring them to participate in the illegal tip pool with non-service employees.  Employers may not use a tip credit unless the service employees retain 100% of all tips and gratuities they receive.

The workers also alleged that Gramercy Tavern required clients to pay an automatic “service charge” of 20% of the total bill for private events, but that none of these gratuities were distributed to the event’s service workers, in violation of the New York Labor Law.

The settlement will be distributed to approximately 220 waiters, waitresses, captains, bussers, food runners, and coffee runners who worked at Gramercy Tavern at any time between June 23, 2011 and September 15, 2016.  The settlement was approved on May 17, 2017 by Judge James C. Francis, a federal judge in New York.

 

Cosimo’s Italian Restaurant Sued For Overtime Violations

Cosimo's Italian Restaurant Logo

Restaurant workers are suing Cosimo’s Italian Restaurant in Westfield, New Jersey for unpaid overtime wages in New Jersey federal court. Cooks, dishwashers, food preparation workers, and other back of house workers  claim Cosimo’s illegally profited at the expense of their employees.  Workers claim Cosimo’s was underpaying them “hundreds of thousands of dollars in wages” throughout the course of their employment. The kitchen workers claimed employees all worked at least approximately 57 to 60 hours per week and often worked long shifts totaling approximately 10 to 12 hours a day.

Cosimo’s paid back of house workers a set salary regardless of the number of hours that they actually worked, and therefore did not pay overtime. Further, it’s claimed that while Cosimo’s knew the failure to pay overtime wages to its workers at time-and-a-half their regular hourly rate would result in financial harm, they intentionally falsified time and pay records in order to evade the law. Attorneys for the former employees have asked that the District of New Jersey Court allow them to notify other former workers about joining the suit.