FLSA lawsuit against fast food restaurant will reach settlement
Delivery employees involved in a class action lawsuit against a New York City fast food restaurant urged a judge on Oct. 25 to preliminarily approve a settlement.
The employees filed the lawsuit in April, claiming many grievances, according to Law360. Workers argued the company underpaid them and deducted bicycle maintenance costs from staff pay and failed to pay delivery workers overtime, in addition to failing to provide wage statements.
They alleged the restaurant misused the Federal Labor Standard Act tip credit, which allows employers to count a certain portion of tips towards minimum wage payment. However, since the workers were required to perform at least two hours of non-tipped work, the plaintiffs argue the restaurant did not meet the qualifications required for the tip credit.
If the resolution goes through, all similarly situated individuals who worked at one of the restaurants locations in New York City between April 2007 and August 2013 will receive a portion of the $800,000 settlement.
Workplace lawsuits cannot always be prevented. However, the time spent on FLSA lawsuits can be minimized by using accurate attendance software that maintains detailed records of employee time. In addition, restaurants must be sure they are operating in compliance with labor laws.
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