Question

In: Operations Management

Wages, Hours, Layoffs, and Leave Misty Cumbie worked as a waitress at the Vita Café in...

Wages, Hours, Layoffs, and Leave

Misty Cumbie worked as a waitress at the Vita Café in Portland, Oregon. The café was owned and operated by Woody Woo, Inc. Woody Woo paid its servers an hourly wage that was higher than the state’s minimum wage (which was higher than the federal minimum wage), but the servers were required to contribute their tips to a "tip pool." Approximately one-third of the tip-pool funds went to the servers, and the rest was distributed to kitchen staff members, who otherwise are not considered tipped employees. Misty sued the employer and alleged that the tip-pooling arrangement violated the minimum wage provisions of the Fair Labor Standards Act. Does it? Explain.

6. If an employee who makes tips earns less than the minimum wage, the employer: is, is not required to make up the difference so that the employee makes at least minimum wage.

7. In this case, the servers earned a wage: higher, the same as, lower than the state minimum wage, which was: higher,
the same as, lower than the federal minimum wage.

8. If the servers donate all of their tips to the "tip pool" and don’t receive any back, they: do, do not earn at least the minimum wage.

9. If the servers donate all of their tips to the "tip pool" and receive a portion of those back, they earn:more than, the same as, less than the minimum wage.

10. In this case, the court likely will find for: Woody Woo, Inc., Misty Cumbie, kitchen staff members

11. WHAT IF THE FACTS WERE DIFFERENT?

Assume Woody Woo decided to pay its servers and kitchen staff the legal minimum wage for a tipped employee (which is less than the required state minimum wage) plus tips received from the tip-pool funds. Under the Fair Labor Standards Act, employers can require employees to pool their tips for "redistribution" among tipped employees to ensure that all tipped employees make at least the minimum wage and are treated fairly.

If Woody Woo, Inc. pays the lower salary plus tips and then creates a tip pool where the servers’ tips are split among the servers and kitchen staff, this: does not violate, violates the FLSA.

12. With these facts, the court most likely would find for: Woody Woo, Inc., Misty Cumbie, kitchen staff members

Expert Solution

No the tip pooling arrangement does not violate the minimum wage provisions of the Fair Labor Standards Act. As it is a restaurant industry and tipping is a part of it and FLSA does not restrict employers from making a fair distribution arrangement of the tips given to some employees, if the employees are being paid the minimum wage as per FLSA by the employer. It is mentioned here that the minimum wage paid by Woody Woo is more than the minimum wage of FLSA and the tip pooling and distribution act does not lower their hourly wages to the state's minumum wage.

6. If an employee who makes tips earns less than the minimum wage, the employer is required to make up the difference so that the employee makes atleast minimum wage.

7. In this case, the servers earned a wage higher than the state minimum wage which was higher than the federal minimum wage.

8. If the servers donate all of their tips to the "tip pool" and dont recieve any back they do earn atleast the minimum wage.

9. If the servers donate all of their tips to the "tip pool" and recieve a portion of those back, they earn more than the minimum wage.

10. In this case the court most likely would find for Woody Woo Inc.

11. If Woody Woo Inc. pays the lower salary plus tips and then creates a tip pool where the servers' tips are split amoung the servers and kitchen staff, this violates the FLSA.

12. with these facts the court most likely would find for Misty Cumbie.

keosha answered 2 years ago

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