On July 23, 2018, employees of P.F. Chang’s China Bistro Inc. (“P.F. Chang’s”) filed a motion for preliminary approval of a $2.65 million settlement to resolve claims that the restaurant chain violated federal and state labor laws by failing to pay their tipped employees a sufficient wage.
Employees sued P.F. Chang’s in April 2016 in the Northern District of Illinois, alleging the restaurant chain failed to inform its employees that they would be paid tip-credit rates below minimum wage, a violation of the Fair Labor Standards Act (“FLSA”) and Illinois and New York state labor laws. Employees were also made to complete non-tip-related jobs, such as refilling condiments and cleaning, and were encouraged to work off the clock and share their earned tips with other employees.
The $2.65 million settlement payment will pay an average of $715 to the 428 class members in New York and Illinois who opted into the case’s conditionally-certified FLSA claims. The other 2,454 proposed class members will receive $600 per person. Collective and class members will have 150 days to claim their relief, and any unclaimed funds will be returned to P.F. Chang’s.
The two named plaintiffs in the case are to receive incentive payments of $10,000 each. The employees are hoping to avoid further cost and delay with class certification and settlement approval.
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Smith, Danielle Nichole. “PF Chang’s Inks $2.7M Settlement With Tipped Employees.” Law 360. Last modified on July 24, 2018