Steak ‘n Shake Settles Collective Action Over Tip-Credited Wages

Steak ‘n Shake gained approval for a settlement in a collective action over claims that the restaurant chain underpays its bartenders and servers by taking a tip-credit from their hourly wages.

A total settlement amount of $372,000 is “a fair resolution of Plaintiffs’ claims under the Fair Labor Standards Act,” Judge Bridget Meehan Brennan of the US District Court for the Northern District of Ohio said on Monday. She approved the settlement and dismissed the case with prejudice.

• The settlement agreement provides all 149 opt-in plaintiffs with monetary compensation based on Steak ‘n Shake’s payroll and timekeeping data and statistical ...