Manhattan's Gallagher's Steakhouse Seared with FLSA Lawsuit

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An individual formerly employed as a server at Gallagher’s Steakhouse in Manhattan has filed a proposed collective and class action against the restaurant’s operating company, Gallagher’s Famous, LLC, and its owner over alleged wage and hour violations. Filed on behalf of all service workers employed by the restaurant within the last three years, the complaint claims proposed class members were shorted on “roughly 2.5 hours’ worth” of pay each week since Gallagher’s automatically deducts one half hour from their shift pay for meal breaks. The issue, the plaintiff alleges, is that the restaurant was aware that its servers did not take meal breaks, yet deducted the money regardless.

In addition, the plaintiff claims servers were paid pursuant to the Fair Labor Standards Act’s tip credit method, only the defendant allegedly broke the law by failing to properly notify the workers that a tip credit was being taken on their wages.

“Because [the defendants] misapplied the tip credits to the plaintiff’s wages, the rate under which they paid [the plaintiff] overtime was also incorrect,” the lawsuit alleges.