Mario Batali to Pay $5.25M in Tips Lawsuit

Mario Batali has agreed to settle a lawsuit filed by waiters, bussers, bartenders, runners and other employees working at a number of his New York restaurants. The $5.25 million class action settlement, which involves approximately 1,100 employees , covers accusations the celebrity chef and his partner illegally confiscated employee tips. Plaintiffs in the Batali tips lawsuit claim the practice was widespread , and that it was in place at all of the chef’s Manhattan eateries. That practice involved taking between 4 and 5 percent of tips from employee wine sales, explains the Hollywood Reporter. Management apparently claimed the money went to “research wines and replace broken glasses.” It really went to the house and supplemented profits. The restaurateurs likely agreed to settle the Batali tips lawsuit because, on its face, the practice appears to violate the federal Fair Labor Standards Act. Department of Labor regulations specifically state that “all tips received by the employee must be retained by the employee.” Valid tip pooling arrangements are the only exception to this rule. The DOL may soon begin to crack down on employers who violate tips rules. In May 2011, the agency clarified the regulations , and ordered employers to notify tipped employees of their legal rights. This includes information about the “tip credit” and hourly wages. So while you may not be engaging in the type of behavior at issue in the Batali tips lawsuit, you might be violating labor law in other ways. Take a look at the clarified rules and adjust accordingly. Related Resources: Chef Batali Agrees to $5.25M Server-Tip Suit Accord (Bloomberg) Fair Labor Standards Act (FindLaw) Batali’s Restaurants Sued Over Waiters’ Tips (FindLaw’s Free Enterprise)

See the original post here:
Mario Batali to Pay $5.25M in Tips Lawsuit

Twitter Follow

Follow us on

Contact Us

ATTORNEY ADVERTISEMENT:  This communication or portions thereof may be considered "advertising" as defined by Section 6157(c) of the California Business and Professions Code or within the jurisdiction in which you are viewing this.  Nothing in the discussion above is intended to be a representation or guarantee about the outcome of any legal proceeding in which you may be involved.  By providing the information above in this format, Michel & Associates is not soliciting you to hire it to handle a specific legal matter you may currently have or be anticipating commencing in the future.  Notwithstanding the discussion above, you should not act or refrain from acting on the basis of any content on this site without seeking appropriate legal advice regarding your particular circumstances from an attorney licensed to practice law.  This communication is informational only and does not create an attorney-client relationship between you and Michel & Associates.  Michel & Associates's attorneys are licensed to practice in California, Texas, and the District of Columbia.