It might be a good time to have a restaurant labor expert review your tip pool policies in light of several recent wage and hour disputes. There are a number of class action lawsuits involving chains and individual restaurants in several states that call into question management policies on how tips are shared and who participates in the tip pools. According to one lawsuit involving several restaurants in Colorado, the allegation involves to some degree the conflict between the restaurant’s policy and state laws. The part that is summarized here suggests you may want to get advice from an attorney and restaurant labor expert on how your food and beverage establishment conforms to state regulation: The lawsuits allege according to Colorado laws, the only workers that can acquire tips from a pool must be FOH (i.e. front of the house employees), like service staff such as waiters and hosts. However at this restaurant, personnel such as cooks, dish washers and food prep workers who are not routinely tipped also took part in the tip pool. In another highly publicized dispute involving a New York foodservice business, the owner ended up reaching a settlement in excess of $5M. One key issue, and a part of that lawsuit, is summarized from the restaurant advisor update here: Supervisors subtracted four or five pct of the shift’s alcoholic beverages revenue in the tip pool and declined employees their “hourly spread” of pay money for individuals working in excess of 10 hrs daily. It is important to know that the above lawsuits are similar to those filed in other states recently. These disputes also call to attention areas you may want to do some restaurant trouble shooting on your tip distribution policies as well. Or, if you are unsure whether your restaurant is in accordance with industry customs and practices and state law afterwards, it is a good time to consult a lawyer and restaurant labor expert.
