A Knoxville woman has filed a federal class-action lawsuit against one of the nation’s largest Waffle House franchisees, saying the company failed to pay employees minimum wage and then incorrectly inflated their wages in its payroll system.
The lawsuit was filed against Rocky Top Waffles LLC on Jan. 10 by Colleen Knoski, a former server at the Cedar Bluff Road Waffle House. Russ Bryant, an attorney with the Memphis firm Jackson, Shields, Yeiser, Holt, Owen and Bryant, said Knoski is still employed by Rocky Top, but did not specify the restaurant.
The lawsuit asserts Rocky Top Waffle House violated workers’ rights under the Fair Labor Standards Act, improperly docking employees’ wages in a tip share agreement and then entering a higher wage in its payroll system.
“… (N)ot only did (Knoski) and similarly situated servers frequently earn far less than the FLSA required $7.25 hourly rate of pay, they were obliged to pay taxes on tips they did not receive,” the lawsuit says.
According to the Department of Labor , “An employer that claims a tip credit must ensure that the employee receives enough tips from customers, and direct (or cash) wages per workweek to equal at least the minimum wage and overtime compensation required under the FLSA.”