Outback Steakhouse has agreed to pay $1.25 million to Minnesota employees to remedy what servers at the restaurant chain said was an illegal tip-pooling procedure under state law.
Under the arrangement, bussers, hosts and servers had to pool their tips. However, servers sued, arguing that they were the ones who earned the tips, and that the Minnesota Fair Labor Standards Act prohibits employer-run, involuntary tip pooling.
Minnesota is one of the few states that do not allow employers to use a tip credit to make up the difference between the amount workers earn and the minimum wage.
Joseph Kadow, executive vice president of Florida-based Outback, said the company agreed to the settlement even though “We believe our tip-sharing practices were in accordance with Minnesota law.”
Note: Minnesota’s wage-and-hour law is stricter than the federal Fair Labor Standards Act.
Like what you've read? ...Republish it and share great business tips!
Attention: Readers, Publishers, Editors, Bloggers, Media, Webmasters and more...
We believe great content should be read and passed around. After all, knowledge IS power. And good business can become great with the right information at their fingertips. If you'd like to share any of the insightful articles on BusinessManagementDaily.com, you may republish or syndicate it without charge.
The only thing we ask is that you keep the article exactly as it was written and formatted. You also need to include an attribution statement and link to the article.
" This information is proudly provided by Business Management Daily.com: http://www.businessmanagementdaily.com/28390/outbacks-tip-policy-no-rules-just-wrong "
- New law limits double-dipping of severance, unemployment
- How should we handle tip calculations that factor out credit card fees?
- Independent judgment, discretion key to administrative exemption under Pa. law
- No unemployment after griping about paltry poultry bonus
- Allowing public access adds new duty to accommodate disabled