Florida Restaurant Sea Salt Facing Lawsuit Over Potential Tip Credit Missteps

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Nane Jan, LLC, which does business as Florida seafood restaurant Sea Salt, is the defendant in a former server’s lawsuit in which the woman claims she’s owed unpaid tips and minimum and overtime wages. The plaintiff’s primary allegation concerns the Fair Labor Standards Act’s (FLSA) tip credit provision, which the woman claims Sea Salt violated by distributing servers’ tips among managers and assistant managers who do not customarily receive tips. The lawsuit argues that since the defendant has incorrectly applied the FLSA’s tip credit rule, the restaurant is legally required to pay the plaintiff and other servers the hourly minimum wage.

The plaintiff further claims that she is owed unpaid time-and-a-half overtime pay for weeks in which she worked more than 40 hours between October 2015 and March 2016.