Lawsuit: Green Eggs Café Must Do Away with Unlawful Pay Practices Under FLSA

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Two operating companies that run Green Eggs Café are facing a proposed collective action filed by a former server who claims she was paid no hourly wages at all during her approximately three-month tenure at the defendants’ North Wildwood, New Jersey location. According to the suit, the defendants operate four other cash-only restaurants – three in Philadelphia and one near Miami – and pay their servers only in customer tips.

The Fair Labor Standards Act does allow employers, “under limited circumstances,” to pay tipped employees a sub-minimum wage and apply tips they receive “as a credit towards the remainder of the minimum wage,” the suit explains. The defendants allegedly failed to adhere to the FLSA’s strict tip credit requirements, the case states. Aside from allegedly paying employees no wages at all, the defendants supposedly neglected to provide notice of the tip credit and allowed non-tipped employees to participate in the tip pool, according to the complaint.

On top of the alleged wage violations, the plaintiff accuses her former employers of failing to keep accurate records of employees’ hours and wages as required under federal law.