Former Chili’s workers challenge tipped wage rules in lawsuit

Former Chili’s workers filed a proposed class action against Brinker International ($EAT), contesting New York’s lower cash wage for tipped employees and alleging workplace discrimination. Their lawyers seek nationwide class status, Reuters reported.

New York’s labor department explains that hospitality employers can combine wages and eligible tips to satisfy minimum pay requirements. In New York City, a $17 hourly minimum can comprise at least $11.35 paid by the employer and up to $5.65 in tip credit. A successful challenge could affect direct wage costs and employment practices, but the case remains at the allegation stage. No class certification, liability finding or change in the wage rules has been announced.

Sources:

• Reuters
• New York Department of Labor
• Reuters via Investing.com