ORLANDO — A recently filed putative, or presumed, class action against Steak ‘N Shake Operations Inc. claims the restaurant chain failed to pay its employees minimum wage and required its tipped employees to perform non-tipped work without proper compensation. The lawsuit was filed in Florida federal court and alleges Steak ‘N Shake’s actions violated the Fair Labor Standards Act (FLSA) and state wage law violations.
The Employees’ Claims
A former server, Brandi West, filed the recent lawsuit claiming the restaurant chain had a practice of improperly paying its wait staff and seeks to include others similarly situated who were not paid the state minimum wage when they performed non-tipped work. Allegedly managers would require the tipped wait staff to work more than 20 percent of their shift performing non-tipped work like trash removal, setting up the restaurants, opening and closing the restaurant, and general cleaning. However, the tipped wait staff would allegedly only receive tipped minimum wage for their time performing non-tipped work, which West claims not only violated labor laws, it also resulted in the employees receiving less than minimum wage for all of the hours they worked.
Tips And Wages
Under the FLSA, if a tipped employee is performing a sufficient amount of non-tipped work they should be compensated for that work at the normal minimum wage level, instead of the tipped minimum wage level. While performing non-tipped, work the employees, naturally, are not receiving tips nor are they able to earn tips to offset the difference in minimum wage rates. Federal minimum wage for non-tipped worked is $7.25 per hour and the tipped minimum wage is $2.13 per hour.
Under the federal minimum wage standards, tipped employees may be paid the tipped minimum wage rate if they earn at least $30 per month in tips. Otherwise they must receive the non-tipped minimum wage. Additionally if a tipped employee’s tips do not bring the employee’s hourly wages up to at least $7.25, the employer is required to bring their hourly wage up to $7.25. State minimum wage rates and requirements for tipped minimum wage vary. For instance, in Florida the non-tipped minimum wage is $8.05 per hour, while the tipped minimum wage is $5.03 per hour.
If you are a tipped employee and you believe your employer is not properly compensating you for all of the hours you work or the overtime you have performed, you may have a wage or overtime pay claim. Time is limited for filing wage and overtime complaints so it is important to call today! Our experienced team of overtime pay lawyers can be reached at (855) 754-2795. Or you may complete our Free Unpaid Overtime Case Review form and our legal team will evaluate your claim. If we accept your case, we will represent you under our No Fee Promise. This means there are no legal fees or costs unless you receive a settlement.