Martins v. MRG of South Florida, Inc.
112 So. 3d 705
| Fla. Dist. Ct. App. | 2013Background
- Martins, a former cocktail waitress for MRG of South Florida, sues under the FLSA alleging pay below minimum wage due to tip credit, uniform costs, walk-outs and breakages, post-shift socializing, and unpaid commissions.
- MRG moved for summary judgment contending Martins’ records show never earning below $4.23/hour (Florida tipped-minimum), and asserted no deductions, no overtime, and that certain claimed activities were not compensable.
- Martins argued tips plus wages did not reach $7.25/hour when training deductions, uniform costs, walk-out payments, and commissions were considered.
- The trial court granted summary judgment; Martins’ late-filed affidavits were not considered on appeal, and the court reviewed the record de novo for FLSA issues.
- The appellate court reversed, finding genuine issues of material fact on tip credit applicability, uniform deductions, walk-out/breakage payments, post-shift marketing time, and commission entitlement.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Tip credit applicability for training hours | Martins claims tip credit was improperly used for training hours | MRG argues tip credit valid if qualified as tipped hours | Issue conflicts; material facts remain about tipping status over training hours |
| Uniform costs reducing wages below minimum | Uniform costs may reduce wages below $7.25 | MRG asserts no unlawful deduction beyond tipped wage | Fact issues exist on whether uniform expenses violated minimum wage |
| Walk-out and breakage deductions | Walk-out costs were borne by Martins reducing pay | MRG did not deduct such amounts from wages | Material facts in dispute about actual deductions and effect on minimum wage |
| Post-shift marketing time | Martins spent ~1 hour weekly marketing after shifts; not paid | Time may be non-compensable or de minimis | De minimis doctrine issue fact-dependent; not conclusively resolved here |
| Commissions for bottle sales | Martins was owed commissions; policies disputed | MRG alleges no applicable policies; Martins disputes existence | Policy existence and entitlement disputed; summary judgment inappropriate |
Key Cases Cited
- Barcellona v. Tiffany English Pub, Inc., 597 F.2d 464 (5th Cir. 1979) (tip credit and duties; when tipped status varies by shift)
- Fast v. Applebee’s Int’l Inc., 638 F.3d 872 (8th Cir. 2011) (non-tipped duties may bar tip credit; factual disputes on hours applicable to tip credit)
- Myers v. Copper Cellar Corp., 192 F.3d 546 (6th Cir. 1999) (distinct duties may affect tip credit applicability across shifts)
- Mitchell v. Se. Carbon Paper Co., 228 F.2d 934 (5th Cir. 1955) (whether uncompensated activity is principal; fact question)
- Anderson v. Mt. Clemens Pottery Co., 328 U.S. 680 (U.S. 1946) (de minimis time; limited exceptions for recording time)