Misty Cumbie worked as a waitress at the Vita Café in Portland, Oregon. The café
ID: 435196 • Letter: M
Question
Misty Cumbie worked as a waitress at the Vita Café in Portland, Oregon. The café was owned and operated by Woody Woo, Inc. Woody Woo paid its servers an hourly wage that was higher than the state’s minimum wage (which was higher than the federal minimum wage), but the servers were required to contribute their tips to a "tip pool." Approximately one-third of the tip-pool funds went to the servers, and the rest was distributed to kitchen staff members, who otherwise are not considered tipped employees. Misty sued the employer and alleged that the tip-pooling arrangement violated the minimum wage provisions of the Fair Labor Standards Act. Does it? Explain.
10. In this case, the court likely will find for (Woody Woo, Inc./ Misty Cumbie/ kitchen staff members)
Assume Woody Woo decided to pay its servers and kitchen staff the legal minimum wage for a tipped employee (which is less than the required state minimum wage) plus tips received from the tip-pool funds. Under the Fair Labor Standards Act, employers can require employees to pool their tips for "redistribution" among tipped employees to ensure that all tipped employees make at least the minimum wage and are treated fairly.
11. If Woody Woo, Inc. pays the lower salary plus tips and then creates a tip pool where the servers’ tips are split among the servers and kitchen staff, this (does not violate/ violate) the FLSA.
12. With these facts, the court most likely would find for(Woody Woo, Inc./ Misty Cumbie/ kitchen staff members).
Explanation / Answer
No the tip pooling game plan does not abuse the lowest pay permitted by law arrangements of the Fair Labour Standards Act. As it is an eatery industry and tipping is a piece of it and FLSA does not limit managers from making a reasonable dissemination game plan of the tips given to a few representatives, if the workers are being paid the lowest pay permitted by law according to FLSA by the business. It is specified here that the lowest pay permitted by law paid by Woody Woo is more than the lowest pay permitted by law of FLSA and the tip pooling and dissemination act does not bring down their time-based compensations to the state's minimum wage.
10. For this situation the court in all probability would discover for Woody Woo Inc.
11. On the off chance that Woody Woo Inc. pays the lower compensation in addition to tips and afterward makes a tip pool where the servers' tips are part among the servers and kitchen staff, this abuses the FLSA.
12. With these actualities the court in all likelihood would discover for Misty Cumby