Camara v. Mastro's Rests. LLC

340 F. Supp. 3d 46
CourtCourt of Appeals for the D.C. Circuit
DecidedOctober 24, 2018
DocketCivil Action No. 18-724 (JEB)
StatusPublished
Cited by8 cases

This text of 340 F. Supp. 3d 46 (Camara v. Mastro's Rests. LLC) is published on Counsel Stack Legal Research, covering Court of Appeals for the D.C. Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Camara v. Mastro's Rests. LLC, 340 F. Supp. 3d 46 (D.C. Cir. 2018).

Opinion

JAMES E. BOASBERG, United States District Judge

From 2015 to 2017, Plaintiff Koly Camara worked as a server at Defendant Mastro's Steakhouse here in Washington. He subsequently brought this lawsuit, alleging that the company's manner of paying its servers violated the Fair Labor Standards Act and the D.C. Minimum Wage Revision Act. His allegations focus on Defendant's use of a so-called "tip credit" - a method of compensation in which an employer pays its employees a base wage below the minimum level set by law; this is permissible so long as the employees' tips ultimately bring their wages up to the minimum. Here, however, Plaintiff claims that Mastro's violated the law by employing a tip-credit system while requiring servers to share tips with employees - e.g. , wine runners and baristas - who did not "customarily and regularly receive tips." 29 U.S.C. § 203(m)(2)(A). In this opening salvo, Defendant moves to compel arbitration and for dismissal, and Plaintiff moves for conditional certification of a collective action under the FLSA and the DCMWRA. Finding merit in Plaintiff's arguments on both issues, the Court denies Defendant's Motion and grants Plaintiff's.

I. Background

The Court starts by describing the legal framework that applies to Plaintiff's lawsuit and then explains the factual and procedural background of this case.

A. Legal Background

For a good while now, federal and local law have required employers to pay their employees a minimum wage. See Fair Labor Standards Act of 1938 § 6, 29 U.S.C. § 206 ; District of Columbia Minimum Wage Revision Act of 1992, D.C. Code § 32-1003. Currently, the federal minimum wage is $7.25 an hour, while D.C.'s stands at $13.25. See 29 U.S.C. § 206(a)(1)(C) ; D.C. Code § 32-1003(a)(5)(A)(iii).

These laws make special provision for "tipped employees" - viz. , employees who "customarily and regularly receive more than $30 a month in tips." 29 U.S.C. § 203(t). Employers may pay such employees *50a lower base hourly wage on the understanding that their tips will bring their total wage up to the minimum. Federal law now requires a base wage of $2.13; D.C. law $3.89. See 29 U.S.C. § 203(m)(2)(A) ; D.C. Code § 32-1003(f)(1)(C) ; see also 123 Am. Jur. Trials 1, § 8 (Sept. 2018). If an employee's tips do not make up the difference between the base and minimum wages, the employer must pay the difference. See 29 U.S.C. § 203(m)(2)(A) ; D.C. Code § 32-1003(f)(1). As mentioned at the outset, this arrangement is known as a tip credit.

An employer may only avail itself of the tip credit if it informs its employees of the arrangement and allows them to retain all of their tips, except that an employer may require employees to pool their tips with other employees who "customarily and regularly receive tips." See 29 U.S.C. § 203(m)(2)(A). This exception for tip pooling is at the heart of this case. To determine whether an employee customarily and regularly receives tips, so as to allow her to share in another's tips, courts typically look to "the extent of an employee's customer interaction." Montano v. Montrose Rest. Assocs., Inc., 800 F.3d 186, 192-93 (5th Cir. 2015). If an employer keeps an employee's tips or requires an employee to share tips with non-tipped employees, it loses the ability to invoke the tip credit. See 29 U.S.C. § 203(m)(2)(A) ; see also Montano, 800 F.3d at 189 & n.6 ; Ventura v. Bebo Foods, Inc., 738 F.Supp.2d 1, 7 (D.D.C. 2010). Employees may sue to recover underpaid wages in violation of these requirements under the Fair Labor Standards Act and the D.C. Minimum Wage Revision Act.

B. Factual Background

Given the stage of the proceedings, the Court recites the facts in the light most favorable to Plaintiff. See Aliron Int'l, Inc. v. Cherokee Nation Indus., Inc., 531 F.3d 863, 865 (D.C. Cir. 2008) (applying summary-judgment standard to motion to compel arbitration); Dinkel v. MedStar Health, Inc., 880 F.Supp.2d 49, 52 (D.D.C.

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Bluebook (online)
340 F. Supp. 3d 46, Counsel Stack Legal Research, https://law.counselstack.com/opinion/camara-v-mastros-rests-llc-cadc-2018.