On May 19th, 2017, Markovits, Stock, and DeMarco and Wukela Law Firm filed a lawsuit in federal court in South Carolina against Captain George’s Seafood Restaurant on behalf of three servers at their Myrtle Beach location. The suit alleges that the restaurant has illegally taken a “tip credit” from servers’ wages while also requiring servers share their tips with the “house,” i.e., the restaurant itself. The plaintiffs seek to represent the interests of all Captain George’s servers who have worked at the Virginia Beach, Williamsburg, Kill Devil Hills, or Myrtle Beach locations over the last three years.
About the Captain George’s Lawsuit
In the Complaint, the plaintiffs allege that Captain George’s wrongly required tipped employees to share their tips with the “house”. Under federal law, tipped employees cannot be required to share tips with their employer, or any other employees who aren’t customarily and regularly engaged in customer service. In this case, the plaintiffs allege that they are required to give 3% of the sales they attain back to the “house” out of their tips.
Tip pools are frequently misused by restaurants across the country. Under federal law, employers are allowed to take a “tip credit” from the wages of tipped employees—reducing their hourly wage rate from $7.25 to $2.13 per hour—but only if they meet certain requirements. One of those requirements is that if the restaurant requires its servers to “pool” tips, the tip pool cannot include back of the house employees, managers, the restaurant itself, or other persons who are not engaged in customer service. Employees who have been forced into illegal tip pools are entitled to full minimum wage—$7.25 per hour under the FLSA—for all hours worked, plus additional damages under the law.
Markovits, Stock, and DeMarco LLC has a strong history of advocating for workers’ rights. Earlier this month, the firm recovered over $750,000 for four restaurant employees who were denied proper wages.
Are you forced to share tips with the “house”? Call us at (877) 450-8665 or complete the form below to initiate a free and confidential consultation.
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ADVERTISING ONLY: The information on this blog is not, nor is not intended to be, legal advice. You should consult an attorney for individual advice regarding your own situation.