A federal court has allowed tipped workers at a craft brewery company to move forward collectively in a lawsuit alleging widespread wage and hour violations. The case was brought by a former server who claims the company improperly used the federal tip credit and failed to pay tipped employees all wages required under the law.
Under the Fair Labor Standards Act, employers may pay tipped workers a reduced hourly rate only if they comply with strict requirements. According to the lawsuit, the brewery failed to properly notify employees about the tip credit and changes to that credit. The complaint also alleges that workers were required to participate in an unlawful tip pool and were forced to cover cash register shortages and unpaid customer tabs using their tips.
The lawsuit further claims that tipped employees, specifically servers and bussers, spent substantial amounts of time performing non-tipped work, such as cleaning, stocking, and other side duties, without being paid the full minimum wage for those tasks. Workers also allege they performed unpaid work before their shifts began and after they were clocked out at the end of the day. These practices, if proven, could violate federal wage laws designed to ensure employees are paid for all hours worked.
The court’s decision allows current and former tipped workers at the company’s locations to receive notice of the lawsuit and join the case. Wage and hour violations involving tipped employees remain common in the restaurant, hospitality, and brewery industries, particularly when employers misuse the tip credit or require off-the-clock work.
If you work in a restaurant, bar, brewery, or other tipped position and believe you were denied wages, required to perform unpaid work, or subjected to an unlawful tip pool, Fitapelli & Schaffer can help. We represent workers nationwide and offer free and confidential consultations to discuss your rights and potential claims.