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Tip Pooling Class Action Lawsuits & The In Vogue Claim - Are You At Risk?

By W. David Osborne, Esq.

June 2006

Do you have a tip pooling arrangement that includes tipping out your kitchen employees? Do you have supervisory employees who get tipped out when they perform busser, host, server, kitchen or bartender duties? If you answer "yes" to either one of these questions, your restaurant could have an unlawful tip pooling arrangement, and you could be exposed to a class action lawsuit.

Tip Pooling Lawsuits Are On the Rise

Wage and hour class actions being filed against California restaurants are nothing new. First, it was claims for overtime pay made by assistant managers. Then, meal and rest break penalties became the most popular class action claim to file against restaurants. Most recently, California restaurants are being inundated with a wave of class action tip pooling lawsuits. The recent San Diego Superior Court case involving Starbucks



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