New York City restaurant Matsu Sushi and its owner are staring down a proposed collective and class action filed by three former employees looking to recover allegedly unpaid wages.
The named plaintiffs allege the tip credit applied to their hourly pay was illegal in that the defendants failed to provide them with legally-required notification that they would be paid at the lower hourly rate. As a result of being paid pursuant to an illegal tip credit, the plaintiffs should have received at least the New York minimum wage for every hour worked, and time-and-a-half wages for every hour worked in excess of 40 each week, the lawsuit says.
“Upon information and belief, [the defendants] failed to keep full and accurate records in order to mitigate liability for their wage violations,” the complaint reads. “[The defendants] never furnished any notice of their use of tip credit.”