Huddle House Franchisee Litco Petroleum Pegged with FLSA Lawsuit in Mississippi

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Litco Petroleum, Inc. and its president and secretary-treasurer are the defendants in a proposed collective action filed by two former tipped servers at the Huddle House franchisee’s restaurants who claim they’re owed unpaid minimum and overtime wages as a result of being required to spend the majority of their shift time performing non-tipped “side work.” Filed in Mississippi, the lawsuit, more specifically, claims the defendants operate a “centralized, unified, and common” scheme of requiring the plaintiffs and proposed collective members – tipped employees – to spend more than 20 percent of their shift time working off the clock performing “side work” around the restaurant without pay. To this point, the case additionally alleges the defendants implemented an improper tip credit against the workers’ hourly pay to which the Litco Petroleum was not entitled. 

“As a result, [the plaintiffs] and other members of the class are entitled to at least the applicable [Fair Labor Standards Act] minimum wage for all unrelated ‘dual occupation’ non-tip producing work, without applying a tip credit,” the case argues.