03/31/2026
The Fair Labor Standards Act (FLSA) is among the most pro-worker statutes in the entire Federal Code. It protects employees from improper pay practices, and is primarily concerned with ensuring, as relevant here, that workers are paid no less than minimum wage.
After several years of litigation, Perry’s Steakhouse and Grill, a Houston restaurant, has learned the hard way just how powerful the FLSA can be. Thanks to problems with the restaurant’s tip-pooling arrangement, a federal judge has entered a roughly $21M judgment in favor of a class of employee plaintiffs.
It’s an interesting case in an area of law with a fair bit of nuance, and I might follow up with a longer blog post. But for now, a short article on the case is attached. And a link to Department of Labor guidance on tip pools is in the comments.
Given the numerous legal issues raised by the case and the amount of the award, an appeal seems likely. Nonetheless, this case is a reminder that businesses should be vigilant about ensuring that they are in compliance with wage and hour laws and employees should be aware that the FLSA is a potentially major source of protection for them.
This firm is always happy to speak to workers who think their FLSA rights have been violated.
That's a lot of pork chops.