Jeff Ruby Restaurants Violated Federal and State Wage and Labor Laws in ‘Tip-Pooling Scheme,' Says New Lawsuit
A lawsuit filed against Jeff Ruby Culinary Entertainment accuses the popular fine dining restaurant chain of violating state and federal labor laws through a forced “tip pooling” scheme.
The lawsuit was filed by a former employee, Jonathan Lamb, "on behalf of all others similarly situated." The lawsuit argues that employees in Ohio, Kentucky, and Tennessee locations were paid less than the minimum wage and that they were forced to share their tips with individuals who do not work for tips.
In doing so, Lamb says Jeff Ruby Culinary Entertainment violated the federal Fair Labor Standards Act and the Kentucky Wages and Hours Act. Currently, the federal minimum wage is $7.25 per hour and the overtime minimum wage starts at $10.88 per hour.
The complaint details that employees were forced to put their tip money in a pool for distribution ‘Until and through June 30, 2022.” The collective tips were then shared with individuals who are not deemed “tip-credit” employees. This tip sharing violates state and federal laws because tips must always be distributed to “employees who customarily and regularly receive tips."
The lawsuit goes on to say the fine dining chain engaged in unjust enrichment at the expense of tipped workers because Jeff Ruby Culinary Entertainment used the tip pool to “subsidize the labor costs for back-of-house employees.”
In addition to minimizing worker pay and earned tips, the plaintiffs say they were required to engage in work duties that minimized their ability to earn tips. Workers spent "substantial amounts of time" engaging in tasks that included mopping, sweeping, and taking out the trash.
Britney Ruby Miller, the CEO of Jeff Ruby Culinary Entertainment, issued a statement shortly after the lawsuit was filed and explained that the lawsuit was filed by a "disgruntled former employee.” She adds that the employee was terminated for “unethical behavior” the company “did not stand for.”
Ruby Miller went on to say, "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.” She added, "The actions alleged in the lawsuit are untrue and we plan to defend ourselves vigorously to the fullest extent of the law."
The lawsuit is seeking to have Jeff Ruby Culinary Entertainment pay back the tips “to the people who earned them” and pay liquidated damages.
