Mould v. NJG Food Service, Inc., 1:13-cv-01305

Mould, a server at the Crab Bag in Ocean City, MD, worked 2011–2013 earning $3.63 hourly for base pay and $7.26 overtime.
Crab Bag employed a tip pool including cooks, crab steamers, and prep cooks under a Levy-drafted apportionment scheme.
In December 2011, Crab Bag implemented a tip-reporting policy estimating tip income as 10% of cash sales and 100% for credit-card tips, excluding tip pool contributions from reporting.
Plaintiff filed suit on May 1, 2012 alleging FLSA, MWHL, MWPCL, IRC, and common-law claims; he later testified that management over-reported wages to IRS.
Levy (GM) supervised tip policy; Graves (owner) owned NJG Food Service and OC Crabbag, LLC; Graves’s involvement in firing/planning termination is contested.
Mould was suspended on June 23, 2013 and terminated June 27, 2013 after alleged inappropriate conduct; retaliation count added later.

Issue	Plaintiff's Argument	Defendant's Argument	Held
Tip credit notice and pool legality under FLSA	Mould claims no proper notice; tip pool included non-tipped staff.	Paychecks show tip credit; pool compliant by practice.	Plaintiff prevails on liability; notice and pool invalid, but willfulness uncertain.
MWHL notice conformity for tip credit	Maryland wage law mirrors FLSA notice defects.	No separate MD notice issue identified beyond federal notice.	Summary judgment for Plaintiff on Count II.
Unlawful deductions under MWPCL	Tip-credit misapplication caused unlawful wage deduction.	Deductions were permitted under tip credit if compliant.	Count III denied to Defendants; unresolved at trial on damages/limits.
Willfulness and statute of limitations	Defendants knowingly violated tip-credit rules.	No willful conduct; relied on mistaken beliefs; no reckless disregard.	Notice violation not willful; two-year limit applies; tip-pool violation not clearly willful; trial issue.
FLSA retaliation claim	termination shortly after complaint shows retaliation.	termination for alleged sexual harassment with corroborating statements.	Count X granted to Defendants; no retaliation proven; judgment for Defendants.

Dorsey v. TGT Consulting, LLC, 888 F. Supp. 2d 670 (D. Md. 2012) (notice requirements for tip credit must be satisfied)
Gionfriddo v. Jason Zink, LLC, 769 F. Supp. 2d 880 (D. Md. 2011) (congruence of FLSA and MWHL; economic reality)
Kilgore v. Outback Steakhouse of Florida, Inc., 160 F.3d 294 (6th Cir. 1998) (tip pool must include only tip-receiving employees)
Myers v. Cooper Cellar Corp., 192 F.3d 546 (6th Cir. 1999) (busboys may be tip pool participants; direct patron interaction not sole criterion)
McLaughlin v. Richland Shoe Co., 486 U.S. 128 (1988) (willfulness standard in FLSA context)
Desmond v. PNGI Charles Town Gaming, L.L.C., 630 F.3d 351 (4th Cir. 2011) (willfulness and standard for retaliation concept)
United States v. Fior D’Italia, Inc., 536 U.S. 238 (2002) (aggregate estimation method for tip income)