In 2021, Kansas-based restaurant chain Jose Pepper’s paid $1.75 Million to settle a lawsuit filed by some employees in Florece v. Jose Pepper’s Rests., LLC.
Kira Florece, a server at the restaurant, filed the case on behalf of herself and other servers alleging that they were prohibited from clocking in until they started serving customers despite being required to be at work before they started serving customers. Second, the servers were only allowed to work overtime if they did not clock in for overtime hours. The management often reduced their overtime hours, paying them less than they deserved. Third, the servers, who are tipped employees, were required to do some non-tipped duties, which qualified them for overtime pay, but their hourly rates were not adjusted to reflect their duties.
In its defense, the restaurant chain used employee timesheets to prove that the servers were compensated for all their hours. However, the servers proved that they were prevented from clocking in, and the timesheets were inaccurate, prompting the parties to agree to a settlement. The United States District Court for the District of Kansas accepted the settlement of $1.75 million. The servers’ lawyers received a third of the settlement, while the rest was distributed among Florece and her colleagues.
Lessons Learned from the Case:
- The case underscores the importance of keeping accurate records of regular and overtime hours worked by non-salaried employees and the corresponding rate of compensation for each.
- The settlement is a reminder to employers that employees should be classified accurately based on their duties and compensated accordingly.
If you want to know more about overtime regulations, read our guide on Kansas Overtime Laws.
