Lawsuit Against Operators of La Victoria Social Club Centers on Allegedly Unlawful Tip Credit Policy

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Buenavista Investment Holdings, LLC and two individuals with control over the company are on the receiving end of a proposed collective action in which the plaintiff claims she’s owed unpaid wages. The plaintiff worked as a bartender at the defendant’s La Victoria Social Club from March 2015 through February 2018. According to the case, the woman’s wages were subject to an unlawful tip credit in that she was not allowed to retain all tips. Instead, the defendants, allegedly failing to comply with the strict tip credit conditions set by the Fair Labor Standards Act (FLSA), required the plaintiff to share her tips with employees who “do not regularly and customarily receive tips.” Further, the case claims the defendants failed to provide the plaintiff with proper notice that she would be paid at a reduced minimum wage rate pursuant to the tip credit.

“[The defendants] failed to inform [the plaintiff] of the amounts claimed as tip credits per hour of the hourly rate [the plaintiff] would receive as wages,” the complaint reads. “[The defendants] also improperly deducted and shared tips received by the plaintiff with the ‘house’ or individuals who do not customarily and regularly receive tips.”