Former Servers Sue Szechuan Story, Wego KTV Owners Over Alleged Labor Law Violations

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Two companies and two individuals who operate Szechuan Story (also known as Szechuan Story Hot Pot) and Wego KTV are facing a proposed class and collective action from two former employees who allege the defendants violated state and federal labor laws. According to the case, the plaintiffs worked as servers at the defendants’ restaurants and were not paid proper minimum or overtime wages.

The plaintiffs say they were paid less than the minimum wage plus tips received from customers. Further, the defendants were not permitted to apply a tip credit to employees’ pay, the suit argues, because they withheld two percent of customer tips as a “credit card transaction fee,” later increasing the amount another two percent and distributing it among non-tipped employees. One of the plaintiffs claims he helped move furniture after one of the restaurants was renovated but was not paid for the work he performed that day.

The case further alleges that the defendants instructed servers to report fewer hours on their timesheets than they actually worked and would sometimes alter their recorded hours without permission.