Pat O'Brien's waiters and bartenders allege that managers dipped into the tip pool in a wages and overtime suit that a federal judge has conditionally certified as a collective action. The New Orleans Times-Picayune reports: Judge Rules More Pat O'Brien's Bartenders Can Join Suit Alleging Unpaid Wages, Tips.
The issue in this case is the application of the tip credit against the minimum wage. The tip credit may be applied against the minimum wage to employees that work in tipped occupations such as bartenders; usually, in Kentucky tipped employees such as bartenders, waiters and servers are paid an hourly rate of $2.13 per hour with the tip credit supposed to at least make up the difference. While it is permissible for tipped employees to share or pool tips, the tip credit cannot be used where non-tipped employees share in the tip pool, or where managers dip into the tip pool.
Another issue that comes up often regarding the tip credit is that it cannot be applied where a tipped worker such as a waiter or server spends more than 20% of his or her worktime doing non-tipped work such as setting up or cleaning up. We recently filed a lawsuit against Logan's Roadhouse regarding this type of misuse of the tip credit: Unpaid Wages & Overtime Suit Filed Against Logan's Roadhouse.
Learn more about the tip credit: The Tip Credit For Waiters & Bartenders: Does It Always Apply?
Lexington, Kentucky overtime lawyer Robert Abell helps individuals and employees recover the overtime and wages they've earned but not been paid; contact him at 859-254-7076.