Famous Dave’s tipped employee pay $995K class action settlement

Famous Dave’s agreed to pay $995,000 as part of a settlement to resolve claims it failed to properly pay servers and other employees who received tips.

The settlement benefits all servers, bartenders, hosts and other tipped employees who worked for Famous Dave’s in Maryland between Feb. 19, 2016, and Oct. 31, 2017, and who were not paid the full minimum wage based on a “tip credit” deducted from their wages. 

All class members are members of the MD Class. Class members may be members of the Fair Labor Standards Act (FLSA) collective if they submit a claim form or previously submitted a consent to sue form.

Famous Dave’s is a barbecue restaurant with locations around the country. Some locations are company owned while others are franchises.

According to a class action lawsuit, the four franchised Famous Dave’s locations in Maryland fail to properly pay their employees sufficient wages. When paying tipped workers such as servers, hosts and bartenders, the Maryland Famous Dave’s locations allegedly deducted a “tip credit” from their wages. As a result of these credits, workers were allegedly paid below the state’s minimum wage.

Famous Dave’s hasn’t admitted any wrongdoing but agreed to a $995,000 class action settlement to resolve these allegations.

Under the terms of the Famous Dave’s settlement, class members can receive a cash payment based on their Class status and the number of hours they worked during the class period. Based on the number of hours they worked during the class period, class members each have an amount they are owed in back wages. This total will affect settlement payment amounts.

Class members who are members of the FLSA collective can receive up to 100% of their final pro rata settlement payment as compensation for the back wages they are owed. These class member payments will be 20% FLSA settlement payments, 40% MD settlement payments and 40% liquidated damages and interest. Class members who are only a part of the MD Class will receive 80% of their final pro-rata settlement payment. Half of these payments will be MD settlement payments and the other half will be liquidated damages and interest.

Payments will also vary depending on the number of class members who participate in the settlement. According to the settlement notice, if every tipped employee elects to participate in the FLSA collective, each class member can receive around 46.07% of their unpaid back wages. Actual compensation rates may vary.

The deadline for exclusion and objection is Oct. 31, 2022. 

The final approval hearing for the Famous Dave’s settlement is scheduled for Dec. 2, 2022.

In order to receive settlement payments, class members must submit a valid claim form by Oct. 31, 2022.

Who’s Eligible

All servers, bartenders, hosts and other tipped employees who worked for Famous Dave’s in Maryland between Feb. 19, 2016, and Oct. 31, 2017, and who were not paid the full minimum wage based on a “tip credit” deducted from their wages.

Potential Award

Varies

Proof of Purchase

No proof of purchase applicable

Claim Form

NOTE: If you do not qualify for this settlement do NOT file a claim.

Remember: you are submitting your claim under penalty of perjury. You are also harming other eligible Class Members by submitting a fraudulent claim. If you’re unsure if you qualify, please read the FAQ section of the Settlement Administrator’s website to ensure you meet all standards (Top Class Actions is not a Settlement Administrator). If you don’t qualify for this settlement, check out our database of other open class action settlements you may be eligible for.

Claim Form Deadline

10/31/2022

Case Name

Graham v. Famous Dave’s of America Inc, Case No. 1:19-cv-00486-DKC in the District Court for the District of Maryland

Final Hearing

12/02/2022

Settlement Website

RG2Claims.com/FamousDaves

Claims Administrator

Graham v. Famous Dave’s Settlement
c/o RG/2 Claims Administration LLC
P.O. Box 59479
Philadelphia, PA 19102-9479
info@rg2claims.com
866-742-4955

Class Counsel

Gerald D Wells III
CONNOLLY WELLS & GRAY LLP

Edward W Ciolko
LYNCH CARPENTER LLP

Defense Counsel

Joyce E Smithey
Levi S Zaslow
SMITHEY LAW GROUP LLC