Lawsuit: SC Seafood Restaurant on the Hook for Wage Violations

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Two former employees of Hudson’s Seafood House on the Docks in South Carolina have filed suit against the restaurant’s operating company – Hudson Seafood Corp. – and an individual owner over claims that the defendants required employees to participate in an illegal tip pool. The plaintiffs – a bartender and server – allege that they were paid an hourly wage of $2.13 plus customer tips, a portion of which were distributed into a tip pool at the end of each day. According to the suit, one individual employee who did not customarily receive tips was permitted to participate in the tip pool, which the complaint says violates the Fair Labor Standards Act’s tip pool requirements and renders the defendants ineligible for a tip credit. As a result, the suit claims, the plaintiffs are owed minimum wages and overtime wages for any hours they worked above 40 in any week.