Tipped Longhorn Steakhouse Servers Deprived of Proper Wages, Lawsuit Alleges

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A proposed class action claims that the operator of Longhorn Steakhouse restaurants has failed to properly pay tipped servers.

The 29-page case alleges Longhorn Steakhouse operator GMRI, Inc. has wrongfully paid tipped servers at a sub-minimum wage rate while failing to satisfy the strict federal requirements that would permit the company to take a tip credit against paying the full hourly minimum wage.

The suit alleges more specifically that GMRI has not only failed to properly notify tipped employees of its intention to apply a tip credit to their wages but paid them at a sub-minimum rate for non-tip generating work and required the individuals to pay for their own uniforms.

The plaintiff claims to have worked at an Erie, Pennsylvania Longhorn Steakhouse as a server between July and November 2021 for an hourly wage of $2.83. The lawsuit alleges that although the plaintiff expected to be paid less than the minimum hourly wage since she would be earning tips, the defendant failed to provide the woman with mandatory notice of its intention to apply a tip credit to her wages.

Under the Fair Labor Standards Act (FLSA), an employer who intends to take a tip credit against its minimum wage obligations must notify tipped employees of the amount of cash wages they will be paid, the amount claimed as a tip credit, that the claimed tip credit cannot exceed the amount of tips the worker will earn per hour, that all tips are to be retained by the employee (except in the case of a valid tip pool arrangement), and that the tip credit does not apply unless the worker has been properly informed of it.

The plaintiff alleges that she and similarly situated Longhorn employees were never informed of the aforementioned provisions and thus should have been paid at least the full minimum wage rate for each hour worked.

The lawsuit goes on to claim that Longhorn improperly paid workers at a sub-minimum rate for non-tip-generating work. According to the case, workers are to be paid at the full minimum wage rate for all non-tipped work that is unrelated to their tipped occupation and for non-tipped work related to their tipped occupation whenever it exceeds more than 20 percent of their shift.

The plaintiff says she was paid at a sub-minimum rate for all non-tipped duties, such as stocking various items throughout the restaurant, cleaning, brewing tea and coffee, polishing and rolling silverware, and wiping down tables, booths and chairs. The plaintiff claims that it was common for her to spend at least two hours on non-tipped duties whenever she worked a four-hour shift.

The lawsuit alleges Longhorn “saves millions of dollars every year” by requiring tipped workers to perform excessive amounts of non-tipped duties at a sub-minimum wage rate.

The case further contends that Longhorn employees were subjected to “strict uniform requirements” without being reimbursed by the defendant for the cost of the garments. Per the suit, these unreimbursed costs amount to a kickback to the defendant of a portion of the workers’ wages and have therefore caused the employees to be paid less than the minimum wage.

The lawsuit looks to represent all current and former servers who worked for the GMRI, Inc. in the U.S. within the statutory period covered by the lawsuit.

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