Employee Claims The Peddler Steakhouse Fails to Pay Servers Proper Minimum Wages

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The company that operates Dillon, South Carolina, restaurant The Peddler Steakhouse and its two owners are the defendants in an employee’s proposed class and collective action that alleges the defendants do not pay tipped workers proper minimum and overtime wages. The plaintiff, who the case says has worked for South Shor, Inc. since 2012, claims she and similarly situated servers are subject to an improper tip credit applied to their wages that requires them to give a percentage of each night’s tips to “the house,” i.e., the restaurant itself. The plaintiff claims proposed class/collective members were never given proper notice that a tip credit would be applied as an offset to their wages and that the defendants are thereby violating the Fair Labor Standards Act (FLSA) by failing to pay proper compensation.

According to the plaintiff, the defendants require servers to contribute 10 percent of their total tips directly to the restaurant, which the lawsuit says was done at the end of each night by placing the money in an envelope and sliding it under management’s office door. The case further claims the defendants failed to reimburse workers for money spent buying tools of the trade, such as slip-resistant work shoes, uniforms, and pens and paper.