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Large Restaurant Chain ordered to pay $2.7M in back wages!

Apr 25, 2019 2:05:00 PM

A proposed class action has been filed against Barbeque Integrated, Inc., which does business as barbeque restaurant Smokey Bones, that seeks to recover alleged unpaid minimum and overtime wages and other “unlawful deductions” owed to tipped workers.

The 20-page lawsuit claims the defendant paid proposed class members less than the minimum wage owed to tipped workers by illegally taking a “tip credit” on the employees pay to which it was not entitled. According to the suit, a “tip credit” allows employers, in very specific circumstances, to pay employees less than the minimum hourly wage. An employer cannot take a tip credit on wages, however, if employees are required to perform non-tipped work unrelated to their tipped responsibilities, or if the workers’ non-tipped tasks exceed more than 20 percent of the work day. Also, employers must clearly notify workers if a tip credit will be taken on their pay[...]

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