A group of Waffle House employees has accused the popular restaurant chain of systematic wage theft, alleging that its owners force servers to perform non-tipped work, such as janitorial duties and dishwashing, while paying them reduced tipped wages.
These claims, outlined in recently filed lawsuits and employee testimonies, are smothered with allegations, suggesting the company may owe workers as much as $46.8 million annually in unpaid wages, Fast Company reports.
Waffle House, known for its affordable menu and 24/7 service, employs thousands of servers across its nearly 2,000 locations in the United States. According to employees, the company has a policy of requiring tipped workers to take on substantial amounts of side work typically assigned to non-tipped staff.
Under the Fair Labor Standards Act (FLSA), employers are allowed to pay tipped workers below minimum wage provided that tips make up the difference. However, the law stipulates that workers must be paid the full minimum wage for any non-tipped work exceeding 20% of their time. Employees argue that Waffle House routinely violates this rule.
According to Fast Company: “Tipped wages start at the federal minimum cash wage of $2.13 an hour. By comparison, the federal minimum wage is $7.25 an hour; #Georgia’s minimum wage is $5.15 an hour, with limited exceptions in which the federal wage applies. Across the entire company, the complaint argued, using tipped servers to do the standard-wage work of janitors and dishwashers saves Waffle House between $15.6 million and $46.8 million a year.”
Waffle House has denied the allegations, stating that it “complies fully with all federal and state labor laws.”
In a statement, the company emphasized its commitment to employee welfare and maintained that side work policies align with industry standards.
“We value our team members and are confident that they are compensated fairly,” the statement read.
#Clique, do you think the minimum wage should be raised for tipped workers or does getting tips make up for it?
