The Fair Labor Standards Act and the New York Labor Law allow employers to utilize a tipped minimum wage rate, but only if its employees are sufficiently informed and only if employees are not required to share tips with tip ineligible employees. Additionally the law requires that if an employee performs a substantial amount of “side work” in excess of 20% of their time at work, the employer must compensate the employee with the full hourly minimum wage rate during these periods as opposed to the tipped minimum wage rate. Both the Fair Labor Standards Act and the New York Labor Law prohibit the practice of tip sharing with non-tip eligible employees. For example, tipped employees do not have to share tips with silverware rollers and expediters. Furthermore, employers must provide employees with accurate statements of wages earned and hours worked.
T.G.I. Friday’s violated these laws and therefore owes Plaintiffs and all other, servers, bussers, runners, bartenders, barbacks, and other tipped workers unpaid minimum wages.
The Fair Labor Standards Act and the New York Labor Law require employees to be compensated for all hours worked over 40 in a workweek at 1.5 times the full minimum wage rate.
As a result, Plaintiffs and all other, servers, bussers, runners, bartenders, barbacks, and other tipped workers, are entitled to overtime wages for hours worked over 40 per workweek in which T.G.I. Friday’s failed to pay them.
Spread of Hours
The New York Labor Law requires that employers pay their employees additional compensation of one hour’s pay at the basic minimum hourly wage rate for each day that the length of the interval between the beginning and end of their workday is greater than 10 hours. This includes both work time and time off for meals and/or breaks. Plaintiffs have alleged that T.G.I. Friday’s has failed to pay Plaintiffs and similarly situated servers, bussers, runners, bartenders, barbacks, and other tipped workers the spread-of-hours pay owed to them under the New York Labor Law.
The New York Labor Law prohibits employers from demanding, accepting and/or retaining part of the gratuities received by employees. Furthermore, the law prohibits employers from requiring tipped employees to engage in a tip distribution scheme where tips are shared with non-tip eligible employees. Non-tip eligible employees do not perform duties that involve customer interaction, nor do these employees perform their duties in view of customers. An Example of non-tip eligible employees who received tips is silverware rollers and expediters.
The New York Labor Law disallows employers from knowingly or intentionally making unlawful deductions from the wages of employees. Deductions made from wages must be expressly authorized in writing by employees and must be for the benefit of the employee. T.G.I. Friday’s made unlawful deductions from Plaintiffs’ and similarly situated servers, bussers, runners, bartenders, barbacks, and other tipped workers’ wages.
Uniform Maintenance Pay
New York Labor Law conditions that where an employer does not maintain required uniforms for any employee, the employer shall pay the employee, in addition to the employee’s agreed rate of pay, uniform maintenance pay. Here, T.G.I. Friday’s required that Plaintiffs and similarly situated servers, bussers, runners, bartenders, barbacks, and other tipped workers maintain their own uniform and did not provide uniform maintenance pay. Therefore, Plaintiffs and other hourly employees are entitled to damages for uniform maintenance pay.