Iron Sushi Operators Pegged with Class Action Over Improper Tip Credits

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Two individuals who worked dually as delivery drivers and in-store employees for Iron Sushi in Florida have filed a proposed class action against the below defendants, all operators of Iron Sushi locations:

• Iron Sushi LLC
• Iron Mami, Inc.
• Masa International LLC
• Iron Group LLC
• Buzz LLC
• You Ki, Inc.
• 70 Aragon, Inc.
• 9030 AKT, Inc.

The suit alleges the plaintiffs and other current and former workers are owed unpaid minimum and overtime wages as the result of an improperly-taken tip credit. According to the complaint, when an employee is engaged in two jobs, one being tipped and the other not, an employer is not allowed to take a tip credit for hours the employee spends performing non-tipped duties. To this point, the case claims the plaintiffs and similarly situated workers spent between 50 and 80 percent of their time doing in-store, non-tipped work. The plaintiffs allege the above defendants, as well as Iron Sushi’s owners, illegally applied a tip credit to the wages of tipped and non-tipped class members that effectively dipped their hourly rate to $3.02 lower than the federal minimum.

“As a result of improperly taking a tip credit toward its minimum wage obligations to [the plaintiffs] and similarly situated employees for the non-tipped job of in-store employee, during all times material, [the defendants] did not properly calculate the minimum wages owed to [the plaintiffs] and the similarly situated employees for all hours worked on numerous occasions,” the lawsuit alleges.