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Restaurant Workers Get Tip-Pool Wage Claims Revived on Appeal

Nov. 24, 2020, 9:15 PM

The Fourth Circuit on Tuesday revived federal and state wage claims brought by a group of servers who allege a now-defunct sushi restaurant in North Carolina wasn’t entitled to take a tip-credit from their wages because it operated an illegal tip pool.

The district court improperly concluded the restaurant had satisfied its minimum wage and overtime obligations through the Fair Labor Standards Act’s exemption for commissioned employees, the U.S. Court of Appeals for the Fourth Circuit said.

The district court correctly determined that automatic gratuities imposed by An Asian Cuisine didn’t qualify as tips because the customers didn’t have any ...