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Last Tuesday, The United States Court of Appeals for the Ninth Circuit &mdash; the federal court with appellate jurisdiction over 13 Western-state districts &mdash; reversed a landmark decision allowing foodservice operators to pay employees sub-minimum&nbsp;wages for some non-tipped work.

<a href="https://www.nrn.com/workforce/landmark-tip-credit-lawsuit-revived-ninth-circuit?utm_source=1851franchise.com&utm_medium=article&utm_campaign=landmark-sub-minimum-wage-lawsuit-reversed-in-ninth-circuit-2707929" target="_blank" rel="nofollow" target="_blank">Nation&rsquo;s Restaurant News has reported</a> that the case of Alec Marsh v. J. Alexander&rsquo;s LLC, which was originally ruled in favor of the operator, J. Alexander&rsquo;s, was reversed in agreement with a similar and subsequent ruling the Eight Circuit.

Alec Marsh, who was joined by 13 other servers and bartenders from a range of franchise foodservice brands for the new suit, alleges that he was paid a tipped-wage for non-tipped work, like cleaning. Marsh&rsquo;s complaint revolves around the Department of Labor&rsquo;s so-called 80/20 rule, which allows employers to pay employees a sub-minimum&nbsp;wage if they spend 80 percent or more of their time on tipped work. Marsh says his employers broke that rule by paying him a tipped-wage even when he spent more than 20 percent of his time on non-tipped work.

By reversing its earlier decision and ruling in Marsh&rsquo;s favor, the Ninth Court is signaling to restaurant owners that they need to take a close look at the day-to-day duties of all of their tipped-wage workers.

Read the <a href="https://www.nrn.com/workforce/landmark-tip-credit-lawsuit-revived-ninth-circuit?utm_source=1851franchise.com&utm_medium=article&utm_campaign=landmark-sub-minimum-wage-lawsuit-reversed-in-ninth-circuit-2707929" target="_blank" rel="nofollow" target="_blank">full article at nrn.com</a>.

Landmark Subminimal-Wage Lawsuit Reversed in Ninth Circuit

Landmark Sub-Minimum Wage Lawsuit Reversed in Ninth Circuit

1851 Franchise

14 servers and bartenders successfully sued their employers for allegedly abusing the so-called 80/20 rule.

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Landmark Sub-Minimum Wage Lawsuit Reversed in Ninth Circuit

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