Bloomberg Law
April 15, 2021, 3:52 PMUpdated: April 15, 2021, 6:54 PM

Darden Tipped Wages Lead to Harassment, Pay Gaps, Suit Says (1)

Paige Smith
Paige Smith

Darden Restaurants Inc.'s practice of paying workers a tipped minimum wage encourages illegal workplace sexual harassment and results in wage gaps for employees of color, a worker advocacy group claims in a lawsuit against the operator of eateries including The Capital Grille, Olive Garden and Longhorn Steakhouse.

Workplaces where employees receive tips are legally permitted to pay a tipped minimum wage below the regular federal minimum wage of $7.25, on the condition that the worker’s wage plus tips reach that federal minimum. The employer must make up the difference if tips don’t meet that amount.

But the advocacy group One ...