• Home
  • News
  • Lawsuit Claims Mount Laurel Steakhouse Refuses to Pay Proper Wages

Lawsuit Claims Mount Laurel Steakhouse Refuses to Pay Proper Wages

  • Apr 17, 2017
  • Erin Gilmore
  • Uncategorized

KMC Enterprises, Inc. is on the receiving end of a proposed class action lawsuit for alleged violations of the Fair Labor Standards Act and the New Jersey State Wage and Hour Law. The plaintiff says he worked as a server and bartender at the defendant’s restaurant—Prospectors Steakhouse & Saloon—located in Mount Laurel, NJ. The defendant allegedly reserves a “tip credit” from servers’ and bartenders’ pay, meaning it is permitted to pay them less than the required minimum wage if it meets certain requirements. According to the complaint:

“While restaurants may utilize a tip credit to satisfy their minimum wage obligations to servers and bartenders, they forfeit the right to do so when they require servers and bartenders to share tips with other restaurant employees who do not customarily and regularly receive tips.”

The suit argues that servers and bartenders at Prospectors Steakhouse are required to share tips with “expediters,” who work in the kitchen “readying food orders for pick-up by the servers” and do not receive tips from customers. By employing this policy, the defendant forfeits its right to apply a tip credit to employees’ pay and must compensate them the full minimum wage, the lawsuit claims.

Before commenting, please review our comment policy.

Stop H.R. 985

A reckless new bill represents an unprecedented threat to consumer rights, essentially gutting class action and mass tort litigation. Congress has tried to ram it through without us noticing. Read more about the implications of this bill, and contact your members of Congress to protect your rights.

Blog Categories

Sign Up For Our Newsletter

New cases and investigations, settlement deadlines, and news - straight to your inbox.

About ClassAction.org

ClassAction.org is a group of online professionals (designers, programmers and writers) with years of experience in the legal industry. We work closely with class action and mass tort attorneys across the country and help with investigations into corporate wrongdoing.