This exemption for employers in Kentucky only applies if the employees can keep all the tips they received. The lawsuit alleges that Applebee’s shared a portion of the tips with non-tipped employees. The tipped employees were forced to give up 20 percent of the tips they received.
In most states, tip-sharing is not illegal. Many multi-state employees have an across-the-board policy that calls for workers to surrender a percentage of their tips. In Kentucky, however, employers must pay regular minimum wage if they take any tips from employees.
The Kentucky Labor Cabinet had been investigating the Corbin restaurant for more than a year and prior to the filing of the lawsuit. Applebee’s in Corbin also has been cited for wage violations. About 80 affidavits from current and former Applebee’s employees have been filed with labor officials regarding the wage dispute.
Contact the Shelton Law Group – a Versatile Kentucky Law Firm.
The Shelton Law Group has experience handling all types of complex labor claims and fraud and business disputes and has handled similar lawsuits against other restaurant chains.
The lawsuit is seeking to award the employees an extra $5.12 per hour they worked to bring them up to minimum wage and also asks to return all tips taken by the restaurant for redistribution. In addition, the complaint is asking for punitive damages, attorney fees and post- and pre-judgment interest.
If you were harmed by an employer’s violation of labor laws, you may be entitled to compensation. For a free case review, call the Shelton Law Group: 1-888-761-7204. You can also complete the online contact form. The Shelton Law Group works on a contingency fee basis, which means clients only pay if the attorney recovers compensation.