A lawsuit for unpaid wages by bartenders and servers against Applebee's regarding application of the tip credit has been turned down for review by the Supreme Court. The case will now go on to trial. The case was decided by the United States Court of Appeals for the Eighth Circuit, which is headquartered in St. Louis, early in 2011: Fast v. Applebee's International, Inc., No. 10-1725.
Source: Los Angeles Times
The "tip credit" allows employers to pay employees that work in jobs where they customarily receive tips far less than the minimum wage, presently $2.13 per hour. The idea is that the employee will receive tips that make up the difference between the rate paid by the employer and the minimum wage.
The servers and bartenders claim in the Applebee's case that they spend more than 20% of their work time performing duties such as cleaning, stocking and readying inventory for which they will not receive any tips. For this non-tipped work time the employees claim they should be paid the minimum wage rather than the lower rate of $2.13 per hour.
Lexington, Kentucky wages and overtime lawyer Robert Abell represents employees in cases seeking their unpaid wages and overtime; contact him at 859-254-7076.
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