Franchise News
Appeals Court Rules Servers Can Sue For Full Minimum Wage
Servers can sue employers for not paying the full minimum wage when they aren’t subject to tips, court says
A federal appeals court cleared the way for servers to sue restaurants for not paying full minimum wage for pre- and post-shift work when there’s no chance of earning gratuities. A Restaurant Business Online article detailed the ruling, explaining the appeals court decided that stated Department of Justice guidelines weren’t consistent with the intent of federal labor laws, meaning servers deserve full minimum wage from their employers for side work or job-related functions where they are not earning tips.
The decision overturned a lower court’s ruling that restaurants weren't required under federal law and DOJ guidelines to pay employees a different wage for pre-shift work like cleaning restrooms and preparing the bar, among other things.
The ruling affected nine full-service restaurants, including P.F. Chang’s, Bakers Square and franchisees of Denny’s and IHOP, and is expected to bring about myriad lawsuits seeking back payment of wages from other restaurant companies.
Read the full story at Restaurant Business Online.
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About the Author
Madeline Lena
FollowMaddie has spent her career in the media industry, serving in various editorial roles before migrating into a hybrid content strategy and PR role with No Limit Agency. Her passion for storytelling and love of writing help her create meaningful content on behalf of her clients and fulfill No Limit Agency’s mission to tell people-driven stories.
Maddie is a graduate of Saint Louis University, where she studied Communications with a focus in journalism and media studies as well as Sports Business. In her spare time, Maddie can be found exploring Chicago’s food scene, watching an NBA game or lamenting over her middling fantasy baseball team.
