Celebrity chef settles overtime dispute with $5.25 million payout
Celebrity chef Mario Batali has agreed to pay workers $5.25 million to settle a dispute over unpaid minimum wage and overtime.
Employees at Babbo and Del Posto - two restaurants in New York that are owned by Batali and Jospeph Bastianich - filed a lawsuit over Fair Labor Standards Act (FLSA) violations. The case was settled March 5, 2012 when Batali agreed to pay the $5.25 million. The workers claimed they didn't receive the full amount of their tips and they weren't paid minimum wage or overtime - any hours worked past 40 in a single workweek.
"Mr. Batali, Mr. Bastianich, and their restaurants unlawfully confiscated a portion of their workers’ hard-earned tips in order to supplement their own profits," employees said in their complaint, according to the Washington Post. Employers unfairly deducted money from the tip pool to cover various costs, including broken glassware and sommeliers expenses, the source reports.
Roughly 1,000 restaurant workers will receive money as a result of the restaurant's inappropriate payroll practices. The settlement will be divided amongst workers at several of Batali's restaurants based on employee attendance.
Employees at Babbo and Del Posto - two restaurants in New York that are owned by Batali and Jospeph Bastianich - filed a lawsuit over Fair Labor Standards Act (FLSA) violations. The case was settled March 5, 2012 when Batali agreed to pay the $5.25 million. The workers claimed they didn't receive the full amount of their tips and they weren't paid minimum wage or overtime - any hours worked past 40 in a single workweek.
"Mr. Batali, Mr. Bastianich, and their restaurants unlawfully confiscated a portion of their workers’ hard-earned tips in order to supplement their own profits," employees said in their complaint, according to the Washington Post. Employers unfairly deducted money from the tip pool to cover various costs, including broken glassware and sommeliers expenses, the source reports.
Roughly 1,000 restaurant workers will receive money as a result of the restaurant's inappropriate payroll practices. The settlement will be divided amongst workers at several of Batali's restaurants based on employee attendance.
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