P.F. Chang’s Lawsuit Filed Over Tip Credit, Minimum Wage Discrepancies

An Arizona man says that a local P.F. Chang’s China Bistro restaurant allegedly failed to properly account for tips in calculating his hourly pay in violation of the federal Fair Labor Standards Act, according to a recently filed restaurant server minimum wage lawsuit.

Plaintiff Ian Schaefer and his employment lawyer allege that he was considered a “tipped employee,” allowing the restaurant to count tips that he received toward minimum wage requirements. However, because of disparities, he “was forced to perform minimum wage work at an hourly rate that was less than minimum wage.”

Further, Schaefer alleges that he was required to complete job duties where there was no opportunity for a tip at that sub-minimum wage, an alleged violation of the Fair Labor Standards Act. Examples cited in the wage and hour lawsuit included restocking supplies, cleaning and maintaining supply levels, among other work. At least one-fifth of his time each week was spent completing these tasks and so he believes he should have been eligible for pay of about $7.80 per hour.

In addition, the restaurant server minimum wage lawsuit alleges that contrary to wage and hour laws, Schaefer had to clock out for one hour per shift although he was still directed by company officials. He is seeking damages on violations of the Arizona Minimum Wage Act and the FLSA regarding hourly wage concerns when he was not engaged in work that could produce a tip to supplement his paycheck.

The restaurant server minimum wage lawsuit is Ian Schaefer v. P.F. Chang’s China Bistro, Inc., Case No. 14-cv-00185, U.S. District Court, District of Arizona.

Free Legal Help for Employees

In addition to questions of whether or not tips meet the minimum wage requirements, the Internal Revenue Service has also issued new guidance regarding service charges effective Jan. 1, 2014. These mandatory gratuities are now considered part of one’s wages, rather than as a tip. This can affect government tax withholdings as well as overtime calculations.

If you think that you missed out on the money you deserve because of violations of wage and hour laws or the new service charges regulations, you should visit the Service Charge, Wage & Hour Class Action Lawsuit Investigation page to learn more about what scenarios may qualify you to pursue a legal remedy against your current or former employer. You can also submit your information for a free consultation with a wage and hour lawsuit attorney. Don’t miss out on any money your case may merit because of statutes of limitations and get started today.