Source: https://www.wigginschilds.com/author/droberts/
Timestamp: 2019-04-20 16:19:25+00:00

Document:
When the employer pays a server $2.13 per hour they are claiming a “tip credit” of $5.12 per hour. This tip credit amount is based on the difference between minimum wage $7.25 per hour and the $2.13 cash wage paid. Generally, the employer bears the burden of showing it is entitled to this tip credit. Unless the employer satisfies the burden of showing the applicability the tip credit, the employee is entitled to full minimum wage for every hour worked.
Garcia v. La Revise Assocs. LLC, No. 08-cv-9356, 2011 U.S. Dist. LEXIS 3325, 2011 WL 135009, at *5-6 (S.D.N.Y. Jan. 13, 2011) (internal quotation marks and citations omitted). “If tipped employees are required to participate in a tip pool with other employees who do not customarily receive tips, then the tip pool is invalid and the employer is not permitted to take a ‘tip credit.'” Ash v. Sambodromo, LLC, 676 F. Supp. 2d 1360, 1369, 2009 U.S. Dist. LEXIS 107184, 20-21 (S.D. Fla. 2009) citing Wajcman v. Investment Corp. of Palm Beach, 620 F. Supp. 2d 1353, 1356 n. 3 (S.D. Fla. 2009) (citing 29 U.S.C. § 203 (m)).
“In determining whether a participating employee is one who ‘customarily and regularly receives tips,’ courts . . . focus on whether the employee in question is ‘part of an occupation that customarily and regularly receives tips’ or whether they have more than ‘de minimis’ interaction with customers as part of their employment.” Id.; see also Kilgore v. Outback Steakhouse, 160 F.3d 294, 301 (6th Cir. 1998). “Where employees’ perform some duties that entail customer service and others that do not [as here], the employees’ level of direct customer interaction is critical to a determination of whether the employee may participate in a mandatory tip pooling arrangement.” Pedigo v. Austin Rumba, Inc., 722 F. Supp. 2d 714, 730 (W.D. Tex. 2010).
If the employer fails to meet these requirements, it is not eligible to claim the tip credit, and in such case, the employer must pay each employee the full minimum wage of $7.25 as required under 28 U.S.C.S. § 206. The plain language of 29 U.S.C.S §216 creates a private right of action against any employer who violates 29 U.S.C.S. § 206. Plaintiffs may be entitled to an equal amount in liquidated damages.
Meaning employers could have to pay $10.24 per hour for every hour worked by a server for a two to three year period under invalid tip pool share system. Each person’s damages are different and the period of recovery is based on the date they file a lawsuit. So if an employee files a lawsuit they can go back two year from that date and three if they can demonstrate the violation was willful.
The final date to add plaintiffs has been extended to October 23, 2018. IN ORDER TO BE A MEMBER OF THIS CASE, Amtrak employees and applicants must talk with one of the attorneys by October 22, 2018.
All who have spoken to one of the attorneys and received paperwork are included in this case and do NOT need to contact their attorneys at this time. It is unnecessary for Plaintiffs to call their attorney to check the status of paperwork sent to the attorney’s office. Attorneys will contact Plaintiffs individually to discuss any issues, after completion of this current phase of litigation.

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