San Jose Restaurant wage-and-hour $1.5M class action settlement

San Jose Restaurant in North Carolina agreed to pay $1.5 million to resolve claims it violated servers’ labor rights by deducting tips and requiring off the clock work.

The settlement benefits individuals who were employed as a server at a San Jose Restaurant location since May 17, 2015.

San Jose Restaurants began when three immigrant brothers decided to open a Mexican restaurant in Whiteville, North Carolina, in June 2000. Since then, the family has expanded their restaurants into many locations in Virginia, North Carolina and South Carolina.

According to a class action lawsuit against the restaurants, San Jose Restaurants violate state and federal labor laws when paying their call center associates and servers. 

Call center associates were allegedly required to perform off-the-clock work before their shifts. According to the plaintiffs, this included booting up computers, launching software, checking emails, reviewing schedules and other tasks to prepare for their shift.

Servers and San Jose Restaurant also had their labor rights violated, the class action lawsuit contends. Servers were allegedly denied minimum wages for all hours worked and overtime for weeks that they worked over 40 hours in a week. Additionally, the plaintiff maintains that San Jose Restaurant regularly took unlawful deductions from server tips — further denying them the compensation they were owed. 

The wage-and-hour class action lawsuit includes claims under the federal Fair Labor Standards Act (FLSA) and the North Carolina Wage and Hour Act.

San Jose Restaurant hasn’t admitted any wrongdoing but agreed to resolve these allegations with a $1.5 million class action lawsuit settlement.

Under the terms of the settlement, class members can receive a cash payment. Payments will vary depending on the number of workweeks worked during the class period, the amount of overtime hours worked during each workweek and the number of bonuses received. Payment estimates are not available through the settlement website.

Half of each payment will be allocated to wage-related damages and will result in a W-2 tax form. The other half of each payment will be allocated to liquidated damages and will result in a 1099 tax form. Class Members are responsible for the tax consequences of these payments and may need to consult with a tax professional.

The deadline for exclusion and objection passed on June 17, 2022. 

The final approval hearing for the San Jose Restaurant settlement is scheduled for Aug. 19, 2022.

The original claim deadline was June 17, 2022. However, the deadline was extended to Aug. 10, 2022.

Who’s Eligible

The settlement benefits individuals who were employed as a server at a San Jose Restaurant location since May 17, 2015.

Potential Award

Varies

Proof of Purchase

No proof proof of purchase necessary

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

08/10/2022

Case Name

Pontones v. San Jose Restaurant, Incorporated, et al., Case No. 5:18-CV-219-D, in the U.S. District Court, Eastern District of North Carolina

Final Hearing

8//19/2022

Settlement Website

SanJoseSettlement.com

Claims Administrator

Pontones v. San Jose Restaurant, Incorporated, et al., Settlement Administrator
1650 Arch St. Suite 2210
Philadelphia, PA 19103
info@SanJoseSettlement.com
Fax: 215-525-0209

Class Counsel

Gilda Adriana Hernandez
Charlotte Claire Smith
THE LAW OFFICES OF GILDA A HERNANDEZ PLLC

Defense Counsel

Henry W Jones Jr
Lori Peoples Jones
JORDAN PRICE WALL GRAY JONES & CARLTON PLLC

James Larry Stine
WIMBERLY LAWSON STECKEL SCHNEIDER & STINE PC