Articles Tagged with tip pool violations

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For several years, our New York wage and hour lawyers have been on the vanguard of a movement agitating for better treatment and fairer pay for restaurant workers. New reports about recent claims against McDonald’s suggest that discrimination, harassment, and wage and hour violations may be even more widespread in the industry than critics have suspected.

The fast food industry is an enormous job engine, currently responsible for 9% of private sector jobs in the U.S., employing 5.5 million women and 5.1 million men. A recent Mother Jones piece investigating the restaurant industry, based in part on information from the Economic Policy Institute, revealed some shocking statistics:

  • Median wage for all forms of payment (tip, tipshare, and flat rate) has stalled at $10/hour for the last 15 years. Non-restaurant U.S. workers, meanwhile, earn a median wage of $18.
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A viral Facebook post inspired Israeli legislators to alter that country’s labor laws, making it illegal for employers to seize portions of employees’ paychecks.

Here’s how the exciting story (with a happy ending) played out, according to local media.

A Jaffa Port club called The Container hired a woman named Anat Kamrad as a server, but she opted out of working at the restaurant because of the establishment’s radical rules regarding customer returns. Per Kamrad, if a customer didn’t like a dish and sent it back, the server would have to pay half the cost of the meal. If a customer left without paying, the server would have to pay the entire cost of the meal, no matter how much the meal itself cost.

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