Thomas v. Morning Chef, LLC

CourtDistrict Court, S.D. Ohio
DecidedSeptember 24, 2025
Docket2:23-cv-02719
StatusUnknown

This text of Thomas v. Morning Chef, LLC (Thomas v. Morning Chef, LLC) is published on Counsel Stack Legal Research, covering District Court, S.D. Ohio primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Thomas v. Morning Chef, LLC, (S.D. Ohio 2025).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF OHIO EASTERN DIVISION

RACHEL THOMAS, : : Case No. 2:23-cv-02719 Plaintiff, : : Judge Algenon L. Marbley v. : : Magistrate Judge Deavers MORNING CHEF, LLC, : : : Defendant. :

OPINION & ORDER

This matter comes before the Court on Defendant Morning Chef, LLC’s Motion for Judgment on the Pleadings (ECF No. 59) and the parties’ joint Motion to Stay Notice to Putative Collective (ECF No. 66). For the following reasons, this Court GRANTS IN PART and DENIES IN PART Defendant’s Motion for Judgment on the Pleadings and GRANTS the parties’ Motion to Stay. I. BACKGROUND On August 24, 2023, Plaintiff Rachel Thomas brought this Fair Labor Standards Act (“FLSA”) action on behalf of herself and all others similarly situated against Defendant Morning Chef, LLC, the owner and operator of several “Another Broken Egg Cafe” restaurants in Ohio. (ECF No. 1 ¶¶ 11; see ECF No. 52 at 2). Ms. Thomas was hired by Morning Chef on or about July 6, 2022. (ECF No. 17 ¶ 14). Thomas alleges that during her employment with Morning Chef as a server and bartender, Morning Chef failed to pay her and others the “full” minimum wage when appropriate, even though Thomas and some of her coworkers regularly worked one to three hours performing non-tipped work after the restaurant would close at 2:00pm. (ECF No. 17 ¶¶ 12, 15–20, 26–34). This non-tipped work supposedly included “sweeping, mopping, re-rolling silverware and napkins; restocking items in the kitchen; restocking items in dining area; cleaning menus[,] tables, chairs [and] booths, cleaning the patio area; and restocking items in server areas.” (ECF No. 17 ¶ 29; see ECF No. 62 at 2). Thomas argues that the amount of time she and others spent on this work was substantial, and thus Morning Chef failed to pay her and others properly,

in violation of 29 C.F.R. § 531.56. (ECF No. 17 ¶¶ 18, 30–34). Thomas asserts violations of the FLSA, the Ohio Minimum Fair Wage Standards Act, and the Ohio Constitution. (ECF No. 17 at 1). On August 23, 2024, just one year after the initial complaint was filed, the United States Court of Appeals for the Fifth Circuit issued its Restaurant Law Center opinion, which vacated the Department of Labor’s December 2021 Final Rule (the “2021 Regulation”) modifying 29 C.F.R. § 531.56. See Rest. L. Ctr. v. U.S. Dep’t of Lab., 120 F.4th 163, 167, 177 (5th Cir. 2024). On November 12, 2024, Morning Chef filed its Motion for Judgment on the Pleadings, arguing that following the Fifth Circuit’s decision in Restaurant Law Center, “29 C.F.R. § 531.56

has been vacated,” and therefore, Thomas has no claim upon which relief may be granted and the First Amended Complaint should be dismissed with prejudice. (ECF No. 59 at 2–3). Thomas filed her Response on January 10, 2025, opposing Morning Chef’s motion. (ECF No. 62). Though Morning Chef received an extension to file its Reply by February 21, 2025, that time has passed, and Morning Chef ultimately filed no Reply. (See ECF No. 69). II. STANDARD OF REVIEW A motion for judgment on the pleadings may be made “[a]fter the pleadings are closed— but early enough not delay trial.” Fed. R. Civ. P. 12(c). A Rule 12(c) motion attacks the sufficiency of the pleadings and is reviewed under the same standard as a motion to dismiss under Rule 12(b)(6). Ziegler v. IBP Hog Mkt., Inc., 249 F. 3d 509, 511–12 (6th Cir. 2001). “[A]ll well- pleaded material allegations of the pleadings of the opposing party must be taken as true, and the motion may be granted only if the moving party is nevertheless clearly entitled to judgment.” JPMorgan Chase Bank, N.A. v. Winget, 510 F.3d 577, 581 (6th Cir. 2007) (internal quotation marks omitted). The Court is not required, however, to accept as true mere legal conclusions

unsupported by factual allegations. Ashcroft v. Iqbal, 556 U.S. 662, 678 (2009). III. LAW & ANALYSIS Plaintiff Thomas’s First Amended Complaint asserts violations of the federal Fair Labor Standards Act (Count I) and of the Ohio Minimum Fair Wage Standards Act and Ohio Constitution (Count II). (ECF No. 17 ¶¶ 46–59). In particular, Thomas invokes the 80/20 Rule and 30-Minute Rule under 29 C.F.R. § 531.56. (Id. at ¶¶ 31–34). Defendant Morning Chef moves for judgment on the pleadings on the basis that Thomas fails to state a claim upon which relief can be granted. Morning Chef requests that this Court grant that judgment in light of the Fifth Circuit’s vacatur of the 2021 Regulation in Restaurant Law

Center and dismiss Thomas’s First Amended Complaint in its entirety and with prejudice. (ECF No. 59 at 2–3, 13–14). Both Thomas and Morning Chef ask this Court to weigh in on the scope of the remedy in Restaurant Law Center and analyze vacatur or universal relief under the Administrative Procedure Act. (ECF No. 62 at 3–8; ECF No. 59 at 2, 6–14). This Court finds that such analysis would be unnecessary and thus declines the invitation to undertake it. The 2021 Regulation no longer exists. Pursuant to Restaurant Law Center, the Department of Labor has withdrawn it, effective December 17, 2024. See 89 Fed. Reg. 101884, 101885 (Dec. 17, 2024) (codified at 29 C.F.R. § 531.56). Therefore, the question is whether Thomas’s First Amended Complaint still states a claim following this regulatory change. Thomas’s First Amended Complaint centers on alleged violations of the FLSA under the 80/20 Rule and the 30-Minute Rule, which are governed by 29 C.F.R. § 531.56.1 (ECF No. 17 ¶¶ 31–32; see id. ¶¶ 33–40). Therefore, this Court will review the regulatory history of these rules before considering whether a claim under either is still viable post-Restaurant Law Center. A. Regulatory Background

The Fair Labor Standards Act sets a federal minimum wage. Today, that minimum wage is $7.25 per hour, where it has remained for some time. Since 1966, the FLSA permits employers to satisfy part of their minimum wage obligation for “tipped employees” by taking a “tip credit” toward the minimum wage requirement, so that employers need to pay each tipped employee at least $2.13 per hour—and can claim a credit of up to $5.12 per hour—if the employee still earns at least the minimum wage when including tips. 89 Fed. Reg. 101884, 101885 (Dec. 17, 2024). The FLSA defines a “tipped employee” as an employee “engaged in an occupation” where they “customarily and regularly receive[] more than $30 a month in tips.” Id. (citing 29 U.S.C. § 203(t)).

1. The 1967 Dual Jobs Regulation The Department of Labor promulgated the Dual Jobs Regulation in 1967 to provide further clarification as to who would qualify as a tipped employee. The Department realized that a common issue arose when an employee spent some time performing tip-producing work, and other time on non-tipped tasks. Id.; see Pender v. S. Flying Wings, Inc., 2025 WL 2522943, at *10 (S.D. Ohio Sept.

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Thomas v. Morning Chef, LLC, Counsel Stack Legal Research, https://law.counselstack.com/opinion/thomas-v-morning-chef-llc-ohsd-2025.