Neither parties' attorney returned a call for comment. The final number of participants in the settlement will be determined by who responds to the settlement offer. Any money not claimed by other members of the class would be returned back to and split amongst the named plaintiffs. The remainder will be split among the other class action members who respond to settlement offers, according to the motion. Each of the named plaintiffs would receive $20,000. The proposed settlement states $179,000 would go to attorney fees and costs. Levy to approve the settlement agreement, providing a lump sum payment of $487,500.Ī hearing is scheduled to take place in Ann Arbor on March 31 to discuss the motion. The former employees informed the franchise that their policies violated guidelines, the lawsuit said, but none of the policies were altered."Defendants engage in illegal use of a tip credit and tip-pooling depriving plaintiffs and similarly situated employees, known or unknown, of fair compensation for their labor," Keith Flynn, one of the women's attorneys wrote in the complaint. The complaint alleged that the franchise violated FLSA and MWOWA because it did not tell employees it used a tip credit, failed to pay the difference when tips did not allow workers to make minimum wage, and gave tips to employees who do not customarily or regularly receive tips, such as managers.Īdditionally, more than half of servers’ tips were contributed to the pool, Flynn wrote. At certain locations, servers have even more of their tip deducted based on seniority," Flynn wrote. Defendants calculate 5 percent of each server’s total alcohol sales and distribute that amount to the bartenders. Three percent of the tips of each server goes to the busboys. "Defendants have a policy at each of their four locations to share the tips of their servers. The restaurant failed to comply with state and federal guidelines "by not providing notice of the tip credit to their employees and engaging in tip-pooling practices that invalidate the use of the tip credit," Flynn wrote.īecause of the system, the servers were not paid at least minimum wage. The four plaintiffs worked at the Brighton location for varying periods of time between 20.Īt that location, management used a tip credit to pay their servers less than the minimum hourly wage, according to the original complaint. SAGANOS FLINT TRIAL"A trial is not currently scheduled, and, given the realities that the judicial system is dealing with over the COVID-19 global pandemic, it is unlikely that this matter will be resolved any time soon barring voluntary resolution. "At the time of filing this motion, more than four years have passed since this lawsuit was filed," Flynn wrote in a motion to the judge earlier this month. This proposal is a significant decrease from the original $1 million in damages originally requested, but the parties are worried about additional delays due to COVID-19, according to the motion. "Defendants engage in illegal use of a tip credit and tip-pooling depriving plaintiffs and similarly situated employees, known or unknown, of fair compensation for their labor," Keith Flynn, one of the women's attorneys wrote in the complaint.
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