National restaurant chain location in Ky. sued by workers
A lawsuit filed against the multi-state franchisee and a manager of a Kentucky-based location of a casual restaurant has grown to include 58 plaintiffs.
The group of current and former employees allege various time and attendance violations, including improper payment of wages and an illegal tipping pool among other accusations, according to local source the News-Journal.
The possible illegality of the tip pool stems from the inclusion of employees who don't usually receive gratuities in the set up, as well as the mandatory nature of the program. The Fair Labor Standards Act allows employees to voluntarily enter into a gratuity-sharing agreement as long as such actions aren't enforced by the employer and non-tipped employees aren't included in the plan.
A state authority, the Kentucky Liquor Cabinet, has previously issued violation notices and fines to the restaurant based on investigations into allegations of failure to pay the minimum wage and tip-sharing irregularities.
The case is currently in U.S. District Court, although the plaintiffs want to move it back to a local level.
Employers that have tipped workers should use employee management software capable of accurately tracking gratuities and ensuring compliance with related laws.
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