TGI Friday’s Hit With Wage and Hour Lawsuit By Tipped Workers

One of the largest TGI Friday’s franchise operators has been hit with a proposed class action lawsuit alleging that the company violated the Fair Labor Standards Act’s wage and hour provisions by depriving tipped workers of overtime pay and other lawfully earned wages.

Plaintiff Peter Palmisano filed the wage and hour lawsuit in New Jersey federal court last week against Briad Group.  Briad Group is the second largest TGI Friday’s franchise operator in the country, with 121 franchises in New Jersey alone.

Improper Wage and Hour Allegations

Palmisano brought the action on behalf of himself and current as well as former TGI Friday’s tipped workers, including servers, bussers, runners, bartenders, barbacks, and hosts. He claims that Briad required tipped workers to perform side work at the start and end of their shift.

The side work included back-of-the house duties, cleaning, test pours, mandatory meetings, and bar clean ups in which employees were allegedly told not to punch in for occurred frequently. According to the wage and hour class action lawsuit should have been paid at full minimum wage rate instead of at the New Jersey tipped minimum wage rate.

The TGI Friday’s wage and hour class action lawsuit also alleges that tipped workers were typically required to stay approximately two hours after the restaurant closed, forcing employees to spend more than 20 percent of their work time engaged in side work duties.

According to Palmisano, there were some weeks he worked approximately 40 hours per week without being paid proper overtime pay.

Additionally, Palmisano maintains that the Briad Group paid tipped workers for this work below the reduced tip credit minimum wage and also encouraged or required tipped workers to work off-the-clock without compensation.

“Defendants’ unlawful conduct, as described in this class action complaint, has been willful and intentional,” the wage and hour class action lawsuit says. “Defendants were aware or should have been aware that the practices described in this class action complaint were unlawful.”

Palmisano is seeking certification for a class of individuals who work or have worked as tipped workers or wait staff at TGI Friday’s in New Jersey owned and operated by Briad Group for a period of two years prior to the filing of this wage and hour class action lawsuit.

The proposed collective class action is requesting unpaid minimum wages, overtime pay, and liquidated damages along with declaratory, equitable and injunctive relief to remedy Briad’s alleged violation of New Jersey labor laws. The TGI Friday’s class action lawsuit is also demanding an order requiring the defendant to cease all improper wage and hour practices.

This is not the first time Briad has been targeted for its alleged improper wage and hour practices.  A proposed class action lawsuit filed in Nevada federal court claims the company violated state labor laws by not paying workers minimum wage.

Briad argued that because it offered its employees heath insurance, it was eligible to pay workers at a reduced wage under the Nevada Constitution.

That wage and hour class action lawsuit is paused pending a Supreme Court ruling regarding the enrollment of employees in health benefits and whether or not paying employees below minimum wage if they enroll in health benefit is constitutional under state regulations.

Palmisano is represented by Stephen H. Kahn of Kahn Opton LLP and Justin M. Swartz and Sally J. Abrahamson of Outten & Golden LLP.

The TGI Friday’s Wage and Hour Class Action Lawsuit is Peter Palmisano et al. v. Briad Restaurant Group LLC et al., Case No. 2:16-cv-02183 in the U.S. District Court for the District of New Jersey.

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