Delivery Workers File Collective Action Against NYC’s Rainbow Umbrella

New to ClassAction.org? Read our Newswire Disclaimer

Manhattan delivery service Rainbow Umbrella, LLC and two individuals are the defendants in a proposed collective action filed by eight current and former employees who allege they were not paid proper wages. The plaintiffs, who work/worked as tipped delivery employees, claim that despite their ostensible job titles, they were required to spend considerable amounts of time each day—more than 20 percent of every workday—performing non-tipped duties unrelated to deliveries. The case claims the plaintiffs and proposed collective members were not paid at least the hourly minimum wage as a result of the defendants’ application of an impermissible tip credit to the individuals’ weekly pay.

“Upon information and belief, [the defendants] have employed the policy and practice of disguising [the plaintiffs’] actual duties in payroll records to avoid paying [the plaintiffs] at the minimum wage rate and to enable them to pay [the plaintiffs] as the lower tip-credited rate by designating them as delivery workers instead of non-tipped employees,” the complaint charges.