Tag Archives: Restaurant

Philadelphia Restaurant to Pay $400,000 to 63 Workers for Wage Theft Violations

Philadelphia Restaurant to Pay $400k to 63 Workers for Wage Theft

Talula’s Garden, a Philadelphia restaurant, has agreed to pay 63 workers $400,000 for wage theft violations, including requiring employees to work unpaid hours, according to a lawsuit initiated by the U.S. Department of Labor. The lawsuit alleges Talula’s Garden violated the overtime, minimum wage, and recordkeeping provisions of the Fair Labor Standards Act (FLSA).

“The workers at Talula’s Garden did not receive the required minimum wage and overtime pay,” said a representative for the Department of Labor. “Our agency is committed to ensuring that workers not only receive the wages they have rightfully earned, but that employers are provided all the tools they need to understand and comply with the law.”

The investigation found that line cooks did prep work off-the-clock before the start of their shifts, resulting in unpaid overtime work.  Servers and bartenders also worked – off-the-clock and without pay – to prepare food, the restaurant, and their individual work stations, resulting in minimum wage and overtime violations. The restaurant also failed to maintain accurate records of work hours for bartenders, servers, and line cooks.

“The off-the-clock work performed by Talula’s Garden employees resulted in clear violations of the Fair Labor Standards Act,” said another Department of Labor employee. The FLSA requires that covered, nonexempt employees be paid at least the minimum wage of $7.25 per hour for all hours worked, plus time-and-one-half their regular rates, including commissions, bonuses, and incentive pay, for hours worked beyond 40 per week. Employers also must maintain accurate time and payroll records.

Mastro’s Restaurant Accused of Stealing from Tip Pool

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Tipped employees at Mastro’s Steakhouse in Chicago sued the restaurant in Illinois state court, claiming that the restaurant illegally retained a portion of the tip pool, and failed to pay its servers the correct minimum wage.

Former Mastro’s busser Jose Murata brought the class action in Illinois State Court against Mastro’s, accusing the restaurant of violating Illinois Minimum Wage Law and the Illinois Wage Payment and Collection Act when it kept part of the pool of tips shared by its front of the house employees.

Attorneys for the severs claim that “the net effect of defendant’s policies and practices is that defendant willfully failed to pay the full amount of compensation earned and due to plaintiff and all other similarly situated employees,” and that “defendant thus enjoyed ill-gained profits at the expense of its hourly employees, including its Tip Credit Employees and Tip Pool Employees.” The class action lawsuit alleges that “in exchange for said labor, defendant was obligated to plaintiff and each member of putative … class the full amount of wages they earned, including tips. Defendant’s practice of operating an illegal tip pool and its improper taking of the Tip Credit has resulted in defendant’s Tip Credit Employees not being paid the full amount of minimum wages owed to them.” The lawsuit, claims that the restaurant was not allowed to take a tip credit because it failed to pay the proper amount of wages to its servers.

Restaurants cannot require servers to share their tips with non-service employees who do not customarily and regularly receive tips, such as dishwashers, cooks, chefs, janitors, and managers. Restaurants can require waiters to split their tips from customers with other front of the house employees who provide personal service to customers as a principal and regular part of their duties (such as bussers, bartenders, barbacks, food runners, captains who provide direct food service to customers, and hosts who greet and seat guests).

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

uncle jacks steakhouse logo

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

peter luger steak house logo

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

tgi friday logo

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.

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

mcdonalds logo

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.