Rosa Mexicano Settles Tip Sharing Lawsuit for $3.6 Million

In 2016, then-current and former workers filed an unpaid overtime lawsuit against the national Mexican food chain over what they say were violations of the Massachusetts Wage Law, the New York Labor Law, and the federal Fair Labor Standards Act.  The defendant, Rosa Mexicano Restaurants settled the class action lawsuit for $3.6 million.

In the lawsuit, plaintiffs alleged that Rosa Mexicano required tipped employees to share their tips with employees who were not tip eligible, called floaters. They also allege the company failed to take the proper tip credit under federal law and violated wage and overtime compensation laws. Plaintiffs said that restaurant workers in New York were not given accurate wage statements with each payment as the statements did not indicate the tip credit taken by the worker.

Class Members Divided into Two Groups

Class members were divided into two groups depending on where and when they worked.

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FRCP 23 Class Members – comprised of persons who worked as servers, server assistants, bussers, runners, drink runners, coffee bar employees, cocktail servers, bartenders, service bartenders and/or barbacks at a Rosa Mexicano Restaurant in New York between April 7, 2010 and Mary 17, 2017 or in Maryland or Massachusetts between April 7, 2013 and May 17, 2017

FLSA Class Members – comprised of persons who worked as servers, server assistants, bussers, runners, drink runners, coffee bar employees, cocktail servers, bartenders, service bartenders and/or barbacks at a Rosa Mexicano Restaurant in Florida, New Jersey, Washington D.C., or Georgia between April 7, 2012 and May 17, 2017.

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