Maffeo v. Dagwoods North LLC

CourtDistrict Court, D. South Carolina
DecidedAugust 1, 2025
Docket4:24-cv-03705
StatusUnknown

This text of Maffeo v. Dagwoods North LLC (Maffeo v. Dagwoods North LLC) is published on Counsel Stack Legal Research, covering District Court, D. South Carolina primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Maffeo v. Dagwoods North LLC, (D.S.C. 2025).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF SOUTH CAROLINA FLORENCE DIVISION

DANIELLE MAFFEO, on behalf of ) Case No.: 4:24-cv-03705-JD herself and all others similarly) situated, ) ) Plaintiff, ) ) ORDER vs. ) ) Dagwoods North, LLC, ) ) Defendant. ) ____________________________________ )

This is a Fair Labor Standards Act (“FLSA”) case. Plaintiff Danielle Maffeo (“Plaintiff” or “Maffeo”) has filed a Renewed Motion for Conditional Certification of FLSA Collective Action under 29 U.S.C. § 216(b) among other matters. (DE 79.) Defendant Dagwoods North, LLC (“Defendant” or “Dagwoods”), has responded in opposition to Maffeo’s motion (DE 83), and Maffeo has replied (DE 84). For the reasons below, the Court grants Maffeo’s Renewed Motion for Conditional Certification of FLSA Collective Action and also finds equitable tolling is warranted. I. BACKGROUND A. Factual Background This action concerns allegations by Maffeo that Defendant engaged in unlawful wage-and-hour practices affecting a group of similarly situated employees. Maffeo seeks conditional certification of a collective action under 29 U.S.C. § 216(b) on behalf of herself and other Restaurant Servers employed by Defendant, alleging violations of the minimum-wage, tip-credit, and reimbursement provisions of the FLSA. Maffeo began working for Defendant as a Restaurant Server in March 2022. (DE 70-1 ¶ 3.) Joanna Blazak (“Blazak”) and Keely Campbell (“Campbell”) were employed in the same capacity during the same period. (DE 71-1 ¶ 2; DE 73-1 ¶ 2.)

Honie Kreischer (“Kreischer”) worked as a Restaurant Server from November 2023 through March 2024. (DE 74-1 ¶ 2.) Maffeo and Blazak remain employed by Defendant. (DE 70-1 ¶ 3; DE 71-1 ¶ 3.) All three declarants attest that dozens of other Restaurant Servers were employed by Defendant during this same period. (See Maffeo Decl. ¶ 46, DE 79-1 at 10; Blazak Decl. ¶ 3, DE 79-2 at 1; Campbell Decl. ¶ 6, DE 79-3 at 2.)

Restaurant Servers, including Maffeo and the declarants, performed similar duties—serving food and beverages, engaging with customers, and performing non- tip-producing side work, such as cleaning and restocking. (See Maffeo Decl. ¶ 6, DE 79-1 at 2; Blazak Decl. ¶¶ 15–17, DE 79-2 at 3–4; Campbell Decl. ¶¶ 9–10, 17–20, DE 79-3 at 2–4.) Defendant paid all Restaurant Servers an hourly wage of $2.13 and claimed a tip credit under 29 U.S.C. § 203(m). (Maffeo Decl. ¶ 25, DE 79-1 at 6; Blazak Decl. ¶ 14, DE 79-2 at 3; cf. Campbell Decl. ¶ 25, DE 79-3 at 5.) These policies were

uniformly implemented at Defendant’s single restaurant location. Maffeo and other declarants allege that Defendant failed to provide the notice required under the FLSA before taking a tip credit. (Maffeo Decl. ¶¶ 24–26, DE 79-1 at 6–7; Blazak Decl. ¶¶ 4–9, DE 79-2 at 1–2; cf. Campbell Decl. ¶ 26, DE 79-3 at 5.) They assert that they were not informed of the amount of the claimed tip credit, their right to retain tips (absent a valid, tip-pooling arrangement), or the legal requirement that such notice must be provided for an employer to lawfully claim a tip credit. (Am. Collective Action Compl. ¶ 1, DE 103 at 1–2.) Keith Stamps, Dagwoods’ original General Manager when the restaurant

opened in March 2022, hired multiple opt-in plaintiffs (see Campbell Decl. ¶ 5, DE 79-3 at 2), but this was not disclosed in Defendant’s Rule 26(a) Initial or Supplemental Disclosures. Campbell, who was later promoted to an opening-shift supervisor in March 2023, asserts that Stamps never provided a tip-credit notice to any Restaurant Servers. (Id. ¶ 8, DE 79-3 at 2.) Defendant’s owner, Jon Staton, acknowledged that a written tip-credit notice was not distributed until August 1,

2024, after this litigation commenced. (Staton Decl. ¶ 3, DE 28-2 at 2; see Blazak Decl. ¶¶ 6–7, DE 79-2 at 2.) According to former Kitchen Manager Martin Burke, General Manager Nicole Jones admitted in August 2024 that the restaurant had not been properly notifying employees of the tip credit and that legal counsel had provided a written notice for all Servers to sign. (Burke Decl. ¶ 7, DE 79-5 at 2.) Maffeo also contends that Defendant required Restaurant Servers to spend more than 20% of their workweek performing non-tipped side work—including tasks

performed before the restaurant opened to the public—without receiving full minimum-wage compensation. (Maffeo Decl. ¶¶ 10–24, 27–34, DE 79-1 at 2–8; Blazak Decl. ¶¶ 15–18, DE 79-2 at 3–4; Campbell Decl. ¶¶ 12–24, DE 79-3 at 3–5; Burke Decl. ¶¶ 12–15, DE 79-5 at 3–4.) Declarants state that Servers were scheduled to arrive at 10:00 a.m., while the restaurant did not open until 11:00 a.m., resulting in at least one hour of untipped work per shift. (Maffeo Decl. ¶¶ 13–22, DE 79-1 at 3–6; Blazak Decl. ¶ 15, DE 79-2 at 3; Campbell Decl. ¶ 14, DE 79-3 at 3; Burke Decl. ¶ 14, DE 79-5 at 4.) Burke confirmed that most customers did not arrive until 11:30 a.m. or later. (Burke Decl. ¶ 14, DE 79-5 at 4.) After litigation began, Defendant modified

its timekeeping procedures to compensate Servers at $7.25 per hour for pre-opening work. (Maffeo Decl. ¶ 51, DE 79-1 at 11; Blazak Decl. ¶¶ 19–20, DE 79-2 at 4; Campbell Decl. ¶¶ 25, 41, DE 79-3 at 5, 8–9; Burke Decl. ¶ 13, DE 79-5 at 4.) Nonetheless, Maffeo asserts that Restaurant Servers were not paid full minimum wage for the time spent on non-tipped duties that exceeded 20% of their weekly hours. (Maffeo Decl. ¶¶ 23, 28, DE 79-1 at 6, 7; Blazak Decl. ¶¶ 18–19, DE 79-2 at 4;

Campbell Decl. ¶ 25, DE 79-3 at 5; Burke Decl. ¶¶ 13–15, DE 79-5 at 4.) Internal records support these assertions. (See DE 79-6 at 1–4; DE 79-8 at 1–2.) Finally, Maffeo alleges that Defendant required Restaurant Servers to purchase mandatory uniforms and tools of the trade without reimbursement. (Maffeo Decl. ¶¶ 35–45, DE 79-1 at 8–10; Blazak Decl. ¶ 21, DE 79-2 at 5; Campbell Decl. ¶ 28, DE 79-3 at 5–6; Burke Decl. ¶ 11, DE 79-5 at 3.) Defendant’s written policy required the purchase and use of Dagwoods-branded shirts and aprons for each shift.

(See DE 79-7 (appearance policy); DE 79-9 (purchase price of Dagwoods shirts for employees).) Maffeo, Campbell, and Blazak all state that they bought multiple shirts for $15 each, as confirmed by Defendant’s written policy. (Maffeo Decl. ¶ 36, DE 79-1 at 8–9; Blazak Decl. ¶ 21, DE 79-2 at 5; Campbell Decl. ¶ 28, DE 79-3 at 5–6.) Servers were also required to supply their own pens, paper, and server books, with out-of- pocket expenses averaging $16. (Maffeo Decl. ¶¶ 40–45, DE 79-1 at 9–10; Campbell Decl. ¶¶ 30–31, DE 79-3 at 6.) According to Maffeo, these items were used exclusively for the benefit of the employer, and the Restaurant Servers were not reimbursed. (See Maffeo Decl. ¶ 41, DE 79-1 at 9.)

B. Procedural Background On June 27, 2024, Maffeo, on behalf of herself and others similarly situated, filed a collective action complaint against Defendant, asserting federal minimum- wage violations arising from Defendant’s alleged misuse of the tip credit, failure to provide statutorily required notice, assignment of excessive non-tipped duties, and failure to reimburse uniform and tool-related expenses. (Compl., DE 1.)

Defendant answered the Complaint on July 27, 2024. (Answer, DE 9.) On September 20, 2024, Defendant moved for partial judgment on the pleadings seeking dismissal of Count II concerning the so-called “80/20/30 Rule,” invalidated by the Fifth Circuit. (DE 40.) Maffeo did not oppose the motion, and the Court dismissed Count II by a Text Order dated March 24, 2025.

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Maffeo v. Dagwoods North LLC, Counsel Stack Legal Research, https://law.counselstack.com/opinion/maffeo-v-dagwoods-north-llc-scd-2025.