New York Based Restaurant Group Sued for Wage & Hour Violations
A class action lawsuit was recently filed in New York state court in Albany County against the Malozzi Group, owner of several New York restaurants, which is illustrative of another way some employers illegal rip off their hourly employees. According to the complaint, as alleged by a former Mallozzi’s server, Malozzi’s restaurants were stealing employees’ tips by charging a mandatory 20 percent service charge on the total cost of a customer’s bill and then not distributing the service charge to the servers. Instead, Malozzi’s restaurants would pay employees a flat hourly rate and the service charge was kept by the restaurant.
If the allegations are true, the restaurants’ practice may violate New York law which requires that “a charge purported to be a gratuity must be distributed in full as gratuities to the service employees of food service workers who provide the service.” Furthermore, New York law states “[t]here shall be a rebuttable presumption that any charge in addition to charges for food, beverage….including, but not limited to any charge for “service” or “food service” is a charge purported to be a gratuity.”
The owners of the restaurant have denied the allegations and claim the lawsuit is meritless.
If you or someone you know is being similarly taken advantage by an employer, please contact the attorney of Khorrami, LLP for a free confidential consultation regarding your potential claims.