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Applebee’s Franchise Faces Overtime Lawsuits

NEW YORK — Two related class action overtime pay lawsuits against Apple-Metro Inc., a New York Applebee’s franchisee, received conditional class certification recently. The employees in the two class actions claim the franchisee failed to pay minimum wage and overtime pay, along with time record alterations and reduced tip credit, in violation of New York labor law and the Fair Labor Standards Act (FLSA). Both parties must now work together to create a notice for all potential class members for court approval. But, with the conditional certification, the more than 4,000 current and former employees can move forward with their claims against Apple-Metro.

The Employees’ Claim

Although the restaurant employees’ lawsuit only addressed alleged FLSA violations at 3 of the 36 Apple-Metro franchise locations, the New York federal judge overseeing the case opened the potential classes to include employees at all 36 locations. The class will include both tipped and non-managerial employees working for Apple-Metro’s restaurants at any time from October 2009 to the present, who did not receive minimum wage or overtime pay when working more than 40 hours a week.

The judge’s decision to expand the scope of the classes is based on the plaintiffs’ evidence of Apple-Metro’s uniform policies and operations. Allegedly, Apple-Metro’s policies are different from other Applebee’s franchise restaurants. The plaintiffs provided evidence that the franchisee’s uniforms, employment benefits, and menus were unique to the Apple-Metro locations. Interestingly, Apple-Metro does not deny that their policies and practices are different from other Applebee’s locations. But, Apple-Metro does claim that the plaintiffs’ allegations were inconsistent and insufficient to show any FLSA violations. The company also claims that, if there were any violations, they occurred at the store level and did not extend to those higher in the corporate structure, so only the initial 3 stores should be included. Neither of these claims appears to have swayed the judge’s initial decision to conditionally certify the class.

Opting-out Of Class Actions

Once a proposed class action receives conditional certification, the parties must draft a notice to all of the potential class members. The notice will inform potential class members about the lawsuit and the class members’ right to opt-out to the action. Class actions, typically, automatically include all potential class members, unless the potential class member takes steps to opt-out of the lawsuit. If a potential class member does not opt-out of the action, then the class member will be bound to whatever outcome occurs, win or lose. However, potential class members have the right to opt-out, which will preserve their right to bring their own lawsuit.

There are strict time deadlines for filing or joining overtime lawsuits, so it is essential you contact an attorney immediately. If you are employee of an Apple-Metro Applebee’s and you have questions about joining the current lawsuit or bringing your own, call our knowledgeable team of overtime pay lawyers today at (855) 754-2795 to discuss your rights. Or complete the Free Unpaid Overtime Case Review form and our experienced legal team will evaluate your case. 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.

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