Lawsuit Alleges Gallagher’s Steakhouse ‘Blatantly Stealing’ Wages from Wait Staff

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Gallagher’s Famous LLC, which operates Gallagher’s Steakhouse in Manhattan, and its owner are the defendants in a proposed collective action that alleges the parties are “blatantly stealing” wages from wait staff.

The plaintiff, a former server at “one of New York’s most famous restaurants,” claims Gallagher’s policy of automatically deducting one half hour from proposed collective members’ pay each shift, ostensibly for a meal break, caused the workers to lose “roughly 2.5 hours’ worth of wages each week” and effectively lowered their pay below the mandatory minimum. Further still, Gallagher’s allegedly took a tip credit on servers’ wages to which it was not entitled because it never gave proposed collective members proper notice. This, the case says, caused servers to be paid less than their correct overtime rates.