LongHorn Steakhouse class action claims restaurant failed to pay employees correctly, advise of tip credit

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LongHorn tip credit class action lawsuit overview: 

• Who: Ashleigh Patton filed a class action lawsuit against Rare Hospitality International Inc.
• Why: Patton claims Rare Hospitality failed to pay the proper minimum wage to workers at its LongHorn Steakhouse restaurants who operated on a hybrid sub-minimum wage and tips basis.
• Where: The class action lawsuit was filed in South Carolina federal court. 

Rare Hospitality International failed to pay all the minimum wages owed to workers at its LongHorn Steakhouse restaurants who were compensated on a hybrid sub-minimum wage and tips basis, a new class action lawsuit alleges. 

Plaintiff Ashleigh Patton claims LongHorn Steakhouse tipped employees’ were underpaid since they were allegedly required to perform “non-tipped side work” that was “unrelated to the tipped profession.” 

Patton argues tipped employees were required to spend more than 20% of their time at work and “continuous periods of time exceeding 30 minutes” engaged in “nontipped side work related to the tipped profession.” 

LongHorn Steakhouse, meanwhile, used a “tip credit” system for paying its tipped employees — meaning it could include their tips in the calculation of their wages — but failed to provide adequate notice of this to tipped employees, the LongHorn class action alleges. 

LongHorn Steakhouse employees not adequately informed of ‘tip credit’ policy, class action says

“Defendant maintained a policy and/or practice whereby they failed to provide tipped employees with the statutorily required notice that Defendant intended to pay tipped employees the tipped minimum wage rate,” the LongHorn class action states. 

Patton wants to represent a class of all current and former employees of LongHorn Steakhouse who are or were paid on a hybrid of a sub-minimum wage hourly pay and tips within the past three years. 

Rare Hospitality International is accused of violating the Fair Labor Standards Act (FLSA). Patton is demanding a jury trial and requesting an award of back wages and liquidated damages for herself and all class members. 

A similar class action lawsuit was filed last year against Carraba’s Italian Grill LLC over claims the company took advantage of tip credits to pay its tipped employees below the legal minimum wage rate. 

Have you been underpaid by your employer? Tell us about it in the comments below. 

The plaintiff is represented by Jacob J. Modla of The Law Offices of Jason E. Taylor PC. 

The LongHorn tip credit class action lawsuit is Patton, et al. v. Rare Hospitality International Inc., Case No. 3:23-cv-00331, in the U.S. District Court for the District of South Carolina.

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