News & Analysis as of

Collective Actions Restaurant Industry

Seyfarth Shaw LLP

Where It’s Filed Really Matters: Jurisdictional Limits in Wage and Hour Litigation

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The Ninth Circuit’s decision in Harrington v. Cracker Barrel underscores the growing importance of personal jurisdiction in limiting the scope of FLSA collective actions. The court held that employees with no connection to...more

Littler

Salt Bae’s Sprinkle of First Impression: Eleventh Circuit Holds Mandatory Service Charges Are Not “Tips” and May Be Used to...

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On March 18, 2022, the U.S. Court of Appeals for the Eleventh Circuit upheld a district court’s decision that an 18% service fee charged at the upscale Miami steakhouse of celebrity chef Nusret Gökçe was not a “tip” and was...more

PilieroMazza PLLC

FLSA and Wage and Hour Issues for Restaurants

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The Fair Labor Standards Act (FLSA) and state or local wage-and-hour statutes establish federal and state minimum wage, overtime pay, and recordkeeping requirements. All restaurants are subject to either the FLSA or state or...more

PilieroMazza PLLC

[Webinar] FLSA and Wage-and-Hour Issues for Restaurants - December 7th, 2:00 pm - 3:00 pm ET

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The Fair Labor Standards Act (FLSA) and state or local wage-and-hour statutes establish federal and state minimum wage, overtime pay, and recordkeeping requirements. All restaurants are subject to either the FLSA or state or...more

Ogletree, Deakins, Nash, Smoak & Stewart,...

Party of One: Collective Action Against Outback Steakhouse Denied due to Lack of Personal Jurisdiction

The U.S. District Court for the District of Massachusetts denied conditional class action certification in a case involving a front of house (FOH) manager suing Outback Steakhouse for unpaid overtime under the Fair Labor...more

Parker Poe Adams & Bernstein LLP

U.S. Labor Department Changes Position on Use of Tip Credit

As previously reported in EmployNews, litigation involving pay for tipped employees continues to vex employers in the hospitality industry. Many of these cases involve varying interpretations of the Fair Labor Standards Act’s...more

Fisher Phillips

Web Exclusive: January 2018: The Top 18 Labor And Employment Law Stories

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It’s hard to keep up with all the recent changes to labor and employment law. While the law always seems to evolve at a rapid pace, there were an unprecedented number of changes each month in 2017—and if January is any...more

BakerHostetler

Court Grants Summary Judgment For Employer In Tip Credit Collective Action

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With scores of collective actions being filed every month and many courts willing to issue conditional certification on even very weak claims, it’s easy to forget that, yes, it’s important for there to be a claim in the first...more

Seyfarth Shaw LLP

What Do Sushi and Burritos Have in Common? Second Circuit Ready to Sample Tasty Wage-Hour Procedural Issues

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Seyfarth Synopsis: The Second Circuit will soon decide key issues for FLSA practitioners: whether settlements pursuant to an Offer of Judgment are subject to court review and approval, and whether the standards for final...more

Fisher Phillips

Could Barring Former Employees From Your Premises Lead To A Lawsuit?

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Hospitality employers open to the general public should be aware of a recent decision by the National Labor Relations Board (NLRB) with implications across the industry. In a 2-to-1 decision, the NLRB ruled that a hotel and...more

Sheppard Mullin Richter & Hampton LLP

Sheppard Mullin Secures Major Victory for Chipotle in Nationwide Misclassification Action By Demonstrating Variations Among...

The Court’s opinion in Scott v. Chipotle Mexican Grill demonstrates how employers can successfully combat class action claims that employees were misclassified as exempt. The successful defense of the class certification...more

Parker Poe Adams & Bernstein LLP

Employers Limited in Service Fees Deductions From Credit Card Tips

Restaurants and some other businesses that use employees partially compensated by tips can claim a tip credit toward the Fair Labor Standards Act’s minimum wage requirements. However, the FLSA strictly regulates the servers’...more

Seyfarth Shaw LLP

Tip-Toeing Around Class Actions: Can a “No Tipping” Policy End Wage and Hour Litigation in the Hospitality Industry?

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Joining a budding national trend, renowned restaurateur Danny Meyer of Union Square Hospitality Group last week announced that he will eliminate formal tipping at his restaurants starting in 2016. Meyer stated that the new...more

Parker Poe Adams & Bernstein LLP

NLRB Says Filing Class Action Lawsuit is Protected Concerted Activity

Section 7 of the National Labor Relations Act prohibits employers from discriminating or retaliating against employees who engage in protected concerted activity. Concerted Activity means actions involving terms and...more

BakerHostetler

Court to Applebee's Servers, Bartenders and Hosts: Washing Dishes and Taking Out the Trash May Be All in a Day's Work

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On May 13, 2013, in a decision favorable to the restaurant industry and companies that employ tipped workers, a district court in Indiana carved out a tip credit claim from a proposed wage and hour collective action brought...more

FordHarrison

Restaurant Industry Newsletter - May 2013: Would You Like Fries, or a Collective Action Overtime Lawsuit, With That Burger?

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A number of well-known restaurant chains have been hit with lawsuits over the last few years alleging that their exempt managers or assistant managers were indeed non-exempt and therefore should have been paid overtime. ...more

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