Arizona Nightclub Operators Hit with Collective Action Over Alleged Tip Pooling Violations

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Alleged wage and hour abuses are the subject of a proposed collective action filed in Arizona against TYC, LLC; Dakota Scottsdale LLC; Scottsdale Beach Club, LLC; Triyar Beach Club LLC; Triyar Entertainment Scottsdale I LLC and three married couples with control over the companies.

According to the lawsuit, the plaintiff worked as a bartender/barback for the defendants—who operate as Dakota, Maya Day + Nightclub, The District and Shade at W Scottsdale—without receiving proper wages. The plaintiff claims that while he and similarly situated employees were paid at a reduced tip-credited hourly rate, the defendants unlawfully prevented the workers from retaining all tips they received. The suit alleges the defendants required tipped workers to contribute to a tip pool that included staff who did not customarily and regularly receive tips.

As a result of requiring workers to contribute to an impermissible tip pool, the defendants, according to the lawsuit, were thereby precluded from paying tipped employees at a tip-credited hourly rate. The plaintiff argues that the defendants should have instead paid members of the proposed collective the full hourly minimum wage, as well as time-and-a-half overtime for hours worked over 40 each week.