Former Employee of Café Exchange Accuses Employers of Labor Law Violations

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A former employee of Kimnam Co., Inc. has filed suit against the company (which operates as Café Exchange) and an individual who controls the business. In a proposed collective action, the plaintiff claims the defendants “systematically ignored” requirements set forth under the Fair Labor Standards Act and state law. The suit is brought on behalf of delivery personnel, food preparers, deli counter workers, inventory stockers, and other deli employees who worked for the defendants during the past three years.

The plaintiff claims he regularly worked at the restaurant for more than 40 hours per week but was only paid for the first 40 hours. He says he is owed his regular wages for the hours beyond 40, plus the additional mandatory half-time hourly overtime rate. Additionally, he argues he was illegally paid at a tip-credited rate that amounted to less than minimum wage, even though he spent most of each shift performing non-tipped duties and was never notified that the defendants would be taking a tip credit. Under the FLSA, employees are required to notify workers before applying a tip credit, and must ensure that tipped employees spend at least 80 percent of each shift performing tipped duties, the suit says.

The complaint further claims employees like the plaintiff were unlawfully denied wage notices upon their time of hire and weekly wage statements that recorded their hours and pay rate.