Case Overview
A group of eight restaurant servers brought a wage claim against their employer alleging (1) improper tip-credit application, (2) unpaid off-the-clock side work (prep and closing), and (3) miscalculated overtime rates.
Legal Issues
Dual coverage under the federal Fair Labor Standards Act (FLSA) and the New Jersey Wage and Hour Law (NJWHL, N.J.S.A. 34:11-56a et seq.). Since 2024, NJ has required a written tip credit notice; failure voids the tip credit entirely and shifts full minimum wage to the employer.
Song Law Firm’s Strategy
- Obtained POS clock-in/clock-out data via discovery and tallied prep and closing time separately
- Proved absence of any written tip-credit notice — voiding the NJ tip credit in full
- Recalculated overtime at full minimum wage × 1.5, not at the tip-credit rate
- Preserved a three-year lookback under FLSA’s willful-violation statute
Outcome
Settlement reached at mediation for all eight servers, recovering unpaid wages plus FLSA liquidated damages (2×), NJWHL 200% add-on, and attorney’s fees. Employer committed to a written tip-credit notice going forward.
Practice Takeaways
- In NJ, tip credit is void without written notice
- Preserve original clock data early in discovery to prevent post-hoc edits
- Overtime rate must use full minimum wage, not tip-credit rate
This case is an illustrative composite reconstructed from anonymized facts across multiple matters. Individual outcomes depend on facts and applicable jurisdiction; please consult a qualified attorney. NJ RPC 7.1. Prior results do not guarantee similar outcomes.
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