The latest news in celebrity chef wage and hour litigation is that eight New York restaurants owned by Mario Batali have agreed to settle $5.25 million to settle a class action lawsuit alleging that they illegally withheld tips from hourly service workers. The proposed settlement, which must still be approved by the court following a
Justices Deny Review of Applebee’s Tip Credit Ruling
In May, my partner Staci reported on a ruling against Applebee’s by the 8th Circuit Court of Appeals, holding that tipped employees who spent more than 20 percent of their working time on nontipped activities like cleaning restrooms were entitled to the federal minimum wage of $7.25 per hour. Applebee’s asked the U.S. Supreme Court
Restaurant Association Sues to Block Tip Credit Rules
On April 5, 2011, the U.S. Department of Labor published new final regulations that among other things require employers to give new detailed notices to tipped employees in order to credit tips toward the minimum wage. The new regulations took effect on June 5, 2011. Yesterday, June 16, 2011, the National Restaurant Association, the
Tip Credits: Twenty Percent Rule For Non-Tipped Duties Adopted
Recently, the Eighth Circuit Court of Appeals ruled that tipped employees who spend more than 20 percent of their time on non-tip-producing “related duties” must be paid at least the minimum wage for that time. Fast v. Applebee’s. This decision marks the first time an appellate court has expressly adopted the Department of Labor’s