![]() Sip & Bite’s attorney, Kevin McCormick, did not reply to On top of that, though, the Selby sisters claimed “the Sip & Bite had other sources of cash income-they received cash from one or more poker machine(s) in the restaurant,” the lawsuit states, adding that “customers deposited money into a machine, and if they won, they would be paid in cash from the cash register.” In making the argument, they pointed out that the restaurant “uses an old-fashioned manual cash register” and that “most of the checks were paid with cash,” but that they’d seen “end of shift reports” listing credit-card sales for the overnight shifts that totaled “between $2,000.00 and $6,000.00 per shift, depending on how busy the restaurant was.” Thus, they estimated annual gross sales-on overnight-shift credit-card sales alone-would be on the order of $1.5 million. The Selbys and their attorneys also alleged that Sip & Bite’s gross annual sales far exceed the $500,000 FLSA threshold. Last November, though, the restaurant agreed to settle Brager’s claims with a payment of $47,500, plus another $12,750 to her attorney, Howard Hoffman.Ī few months later, two sisters-Stephanie and Ashley Selby, represented by Hoffman and another attorney, Bradford Warbasse-filed another FLSA lawsuit against Sip & Bite, saying they worked there for years, earning only for tips-“except for a single payment of $59.00” to Stephanie Selby, the lawsuit states. In the Brager case, Sip & Bite claimed it is exempt from the FLSA because it generates less than $500,000 annually in gross sales. ![]() Deductions for cash shortages or customer walk-outs, meanwhile, are also illegal if they reduce the tipped employee’s wages to below the minimum wage. Under Maryland’s Wage and Hour Law, the hourly wage for tipped restaurant servers must be no less than $3.63. Department of Labor fact-sheet about the FLSA as it pertains to restaurant workers, an employer that grosses more than $500,000 annually “must not pay less than $2.13 an hour in direct wages” to its servers, “and make sure that the amount of tips received is enough to meet the remainder of the minimum wage,” which is $7.25 an hour. Tips left by customers,” the lawsuit continued-with emphasis in the original, to stress that she didn’t receive tips on credit-card transactions-and “if there were customer walkouts and cash register shortages, she was forced to repay” losses “out of her cash tips.”Īccording to a U.S. Baltimore Sun eNewspaper Home Page Close Menu
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