A Tennessee woman has filed a proposed collective action against Genghis Grill; Genghis Grill Franchise Concepts, LP; Chalak Mitra Group of Companies; and seven individuals claiming they fail to pay their employees proper wages. The plaintiff, who worked for the defendants as a hostess and server, says she was paid a below-minimum hourly wage, plus tips she received from customers. She argues that the defendants were not permitted to take a “tip credit” out of her wages because they allowed non-tipped employees to participate in the tip pool and required the plaintiff to perform non-tipped duties for at least 20% of each workday.
Furthermore, the defendants forced employees to clock out and continue working in order to avoid paying them overtime, according to the suit. The plaintiff claims she was never paid for this “off the clock” work, which ranged from 30 to 90 minutes per shift.
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