Appeals Court Rules Servers Can Sue For Full Minimum Wage

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.