Eversheds Sutherland 11th Circuit Business Blog
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Restaurant’s Mandatory Service Charge is Not a “Tip” Under FLSA

Tipped employees at Miami’s Nusr-et Steakhouse sued their employer, alleging that the restaurant violated the Fair Labor Standards Act by counting payments to employees from the restaurant’s mandatory 18% “service charge” as part of the employees’ “regular rate of pay,” rather than as tips. The district court rejected the employees’ claim and granted the restaurant’s motion for summary...