Lawsuit: Jeff Ruby restaurants' 'tip-pooling scheme' violates state and federal labor laws
The company that runs Jeff Ruby restaurants in three states has been violating state and federal labor laws by using tips earned by some employees to pay others who didn't earn them, a federal lawsuit alleges.
The case was brought on behalf of hundreds of servers and bartenders who have worked at three Jeff Ruby restaurants in Cincinnati – the Precinct, Carlo & Johnny and Jeff Ruby’s Steakhouse.
In addition to the three Cincinnati restaurants, the complaint names Jeff Ruby's Steakhouse restaurants in Columbus, Lexington, Louisville and Nashville.
According to a complaint filed Tuesday in federal court in Cincinnati, the employees were paid less than the minimum wage of $7.25 per hour, under what the law calls a "tip credit."
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The lawsuit alleges that the Jeff Ruby restaurants violated the legal requirements for that pay practice.
In a news release, attorneys for the employees said the restaurants used "a tip-pooling scheme" to take employees' tips and pay other "back-of-house" workers who didn't earn the tips − and who didn't even interact with customers in a meaningful way.
The lawsuit also alleges that servers and bartenders were required to conduct non-tip-producing work at a sub-minimum hourly wage.
That work included sweeping, mopping, polishing glassware and silverware, and taking out trash, according to the lawsuit.
An attorney for the Nashville, Tennessee law firm that filed the lawsuit said in a statement that employers often violate the wage rights of servers and bartenders.
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"While the labor market may be booming, too many employers skimp on their responsibility to pay their employees according to the law," said David Garrison, who is serving as lead attorney on the case.
Britney Ruby Miller, CEO of Jeff Ruby Culinary Entertainment, said in a statement that the named plaintiff in the lawsuit is a "disgruntled former employee."
"Our family-owned business is passionately dedicated to our employees. They are not only our greatest asset – they are family. Our purpose statement is to 'transform the hospitality industry by improving lives through our culture of caring.' We have always and will always stand up for justice and truth," Ruby Miller said.
"The actions alleged in the lawsuit are untrue and we plan to defend ourselves vigorously to the fullest extent of the law."
This article originally appeared on Cincinnati Enquirer: Lawsuit: Jeff Ruby's 'tip-pooling scheme' violates labor laws
