Spa City Steaks Broiled in Lawsuit Over Tip Pooling

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Spa City Steaks, Inc., more popularly known as Colton’s Steak House and Grill, is the defendant in a proposed collective action alleging the plaintiff and other servers were not allowed to keep all tips they received. The case claims proposed collective members were subject to an unlawful tip pool for which management would collect the workers’ tips and distribute them among traditionally non-tipped employees, such as chefs and dishwashers. As a result, the plaintiff and proposed collective members were paid under the Arkansas minimum wage. 

“Because [the plaintiff] and other servers spent more than 20% of their time performing non-tipped duties for [the defendant], [Colton’s] was required to pay [the plaintiff] and its other servers at least $7.50 per hour,” the case alleges, citing possible violations of the Fair Labor Standards Act (FLSA) and Arkansas Minimum Wage Act (AMWA).