Plaintiffs allege multiple operators abused 80/20 rule
The United States Court of Appeals for the Ninth Circuit on Tuesday revived a lawsuit filed by a group of servers and bartenders that could have sweeping consequences for the industry, addressing whether a subminimum wage can be used for non-tipped work.
The case, Alec Marsh v. J. Alexander’s LLC, is named for a server who sued the casual-dining chain alleging he was unfairly paid a tip-credit wage for tasks unrelated to serving, like maintaining the soft drink dispenser and cleaning toilets.
Marsh was joined in the lawsuit by 13 other servers and bartenders who alleged similar complaints at franchised units of Denny’s, IHOP, P.F. Chang’s China Bistro, Arriba Mexican Grill and an AMC Theatre. The restaurant companies did not immediately re...
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