The struggle for fair wages has hit the Waffle House chain in Tennessee, with employees leveling lawsuits against franchise owners for allegedly paying below the federal minimum wage. Servers say they've been handed short paychecks despite their labor, working both jobs that earn tips and those that don't, with their tipped income not lifting them to minimum wage levels.
Two separate lawsuits are spotlighting the alleged wage abuses within the popular diner chain. Employees Colleen Knoski, Nicole Armes, and Markesha Faulkner are the faces of this legal pushback against their employers, Rocky Top Waffles, LLC, and Mid South Waffle Houses Inc., respectively. Allegations have surfaced that these employees often ended their shifts with earnings below the federal minimum wage of $7.25 per hour when combining their hourly pay with their tip income, as per WATE.
Employers allegedly disregarded the Fair Labor Standards Act (FLSA) by paying workers the same rate for tipped and non-tipped work. The distinction is significant because, in Tennessee, a tip credit allows employers to pay a reduced wage to employees who earn tips, with the expectation that their tipped income will make up the difference to ensure they receive at least minimum wage. This model is called into question when workers, such as Armes and Faulkner, reportedly received $2.60 and $2.50 per hour respectively, without their tips reaching the threshold that would raise their income to the required level, as reported by Knox News.
Knoski's lawsuit includes claims of manipulation within the payroll system – where the company would enter tips that the server didn't earn – to appear as if the minimum wage was met. This fraudulent action left workers like Knoski paying taxes on income they never received, deepening the sting of deceit, as per USAttorneys.com.
