Denny’s Inc. is facing an employee’s proposed collective action filed over allegations that the company improperly applied a tip credit to her wages.
According to the suit, the plaintiff works as a server at an Akron, Ohio Denny’s restaurant. The case claims the defendant acted in “reckless disregard” of the Fair Labor Standards Act (FLSA) by failing to properly pay the worker at least the full minimum wage. The plaintiff alleges the company was not entitled to apply a tip credit to her wages because she spent over 20 percent of each workday performing non-tipped duties both related and unrelated to her position, including dishwashing and busing tables. Additionally, the suit says the defendant failed to properly inform the server that a tip credit would be applied to her wages.