Green v. Perry's Restaurants LTD
1:21-cv-00023
D. Colo.Dec 17, 2024Background
- Plaintiffs Lance Green and Anderson Khalid, former servers at Perry’s Steakhouse locations, brought a Fair Labor Standards Act (FLSA) collective action alleging failure to pay minimum wages and misuse of tips.
- Plaintiffs represented themselves and similarly situated servers who worked at Perry’s in Colorado, Alabama, North Carolina, or Florida in the prior three years and were paid a subminimum wage.
- The collective was conditionally certified, and about 135 individuals opted in as plaintiffs.
- The dispute proceeded to the "second stage" decertification analysis, applying a stricter standard to whether opt-in plaintiffs are "similarly situated."
- Plaintiffs advanced three 'subclaims': (1) unlawful tip pool, (2) excessive non-tipped side work for which tip credit was taken, and (3) improper deduction for uniforms/equipment.
- Defendants moved to decertify the collective, focusing on differences among plaintiffs' circumstances and raising a jurisdictional challenge for out-of-state claims.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| 1. Unlawful Tip Pool | Tip pool included employees not eligible (e.g., hosts, food runners), violated FLSA | Participation in pool eligibility requires individualized inquiry per role/location | Collective can proceed as to inclusion of non-tipped employees, but not for claims about retention of tips or distribution to unstaffed positions |
| 2. Side Work (80/20 Rule) | All locations use same checklist; servers spent substantial time on side duties | Side work requirements varied, requiring individualized assessment | Sufficient similarity for collective treatment; motion denied on this claim |
| 3. Uniform/Equipment Deductions | Uniform and equipment costs unlawfully deducted by Perry’s | Plaintiffs varied in costs/deductions, making collective treatment improper | Variation relates only to damages; collective can proceed on this claim |
| 4. Personal Jurisdiction Over Opt-in Plaintiffs | Bristol-Myers does not apply to FLSA collectives; jurisdiction is proper | Bristol-Myers bars claims for opt-in plaintiffs outside forum, especially against PRL | Court rejects Bristol-Myers argument; maintains jurisdiction for collective |
Key Cases Cited
- Thiessen v. Gen. Elec. Capital Corp., 267 F.3d 1095 (10th Cir. 2001) (establishes two-stage standard for FLSA collective certification/decertification)
- Marlow v. New Food Guy, Inc., 861 F.3d 1157 (10th Cir. 2017) (explains FLSA tip credit and minimum wage requirements)
- Bristol-Myers Squibb Co. v. Superior Court of Cal., 582 U.S. 255 (2017) (specific jurisdiction over nonresident plaintiffs in mass actions)
