Waiters Sue Employer For Tips and Get Record Settlement

Berke-Weiss & Pechman LLP has obtained court approval of a $3.15 million dollar settlement with Sparks Steak House of a class action the firm brought on behalf the waiters at Sparks.  The lawsuit was brought under the Fair Labor Standards Act and the New York Labor Law to recover tips alleged to have been misappropriated by the restaurant.  The Sparks settlement is the largest reported wage settlement ever obtained involving a single restaurant.  (Click here to view the Final Order approving the settlement).

Sparks is self-described as “the Fort Knox of fine aged beef.”  It has been recognized by Zagat as the “apex” of New York steak houses and by Fodor’s as the “classic New York steak house.”  There were 200 present and former waiters of Sparks involved in the lawsuit.

The basis of the claims against Sparks was the diversion of waiters’ tips to individuals such as kitchen expediters, the banquet manager, and a dessert chef who were alleged to have been improperly included in the tip pool.  Sparks denied the claims and the case was litigated for three years before settlement was reached.

At the Fairness Hearing on the settlement, United States District Court Judge Paul A. Crotty recognized the “professionalism” of the parties in the way in which they had resolved the case.  Judge Crotty found that “the settlement in all its respects is fair and reasonable and adequate.  It addresses mistakes that were made over time and corrects them, puts the defendant on a better course to follow in the future, one that will hopefully eliminate any further disputes.” (Click here to view transcript of the Fairness Hearing).  The settlement also was recognized by Norman Bromberg, former District Director of the U.S. Department of Labor’s Wage and Hour Division, New York District Office, as “fully and fairly reimbursing” the Sparks waiters.

Berke-Weiss & Pechman LLP has been active in wage and hour litigation within the restaurant industry.  The Firm currently has cases pending against Bobby Van’s Steak House, the Old Homestead Steak House, Estiatorio Milos, Scalinatella, and other New York City restaurants.  In addition, Berke-Weiss & Pechman LLP has been conducting preventative counseling and litigation defense for restaurants who want to ensure they are in compliance with the law.