Patron Mexican Grill Applied Improper Tip Credit to Wages, Lawsuit Claims

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A proposed collective action filed against the operating company behind Patron Mexican Grill, Rachel on Ninth Corp., and four individuals who run the New York City Mexican eatery claims current and former tipped employees were not paid proper wages. The plaintiffs, who worked as a tipped waiter and busboy, respectively, claim that despite their ostensible status as tipped employees, the defendants required them to spend several hours each workday performing non-tipped duties unrelated to serving food and bussing tables. To this point, the lawsuit claims the defendants, when considering the plaintiffs’ true job duties, applied an improper tip credit to the individuals’ wages that unlawfully sunk their pay below the federal minimum.

The plaintiffs claim their pay did not vary no matter how many hours they worked; that they were not provided meal/rest breaks during their work days; and that they were never informed by the defendants that their tips would be included as an offset for wages.