New York Celebrity Chef Batali, of “Iron Chef America,” “The Chew“ and “Mario
Eats Italy” fame, has agreed to pay out $5.25 million to employees to settle an
employee class-action lawsuit about tipping.
The
settlement involves 1,100 employees, but serves as an expensive lesson about the
consequences of playing fast and loose with federal wage and hour laws and
skimming off tipping pools.
According to the Toronto Sun, "Batali and the other
owners of the eateries unlawfully skimmed four to five percent of the staff’s
wine or alcoholic beverage sales from the tip pool, taking an unlawful “tip
credit,” paying staff members less than the minimum wage, and failing to provide
“spread-of-hours” pay — that is, extra pay when a double shift extends over a
certain number of hours in the day."
Lesson learned. Don't mess with tips and basic rules
about wages.
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