Mohammad Jahir v. Ryman Hospitality PropertiesMohammad Jahir v. Ryman Hospitality Properties
Lead Opinion
Affirmed by published opinion. Judge SHEDD wrote the opinion, in which Judge DUNCAN joined. Judge HARRIS wrote a separate opinion concurring in the judgment.
Mohammad Sazzad and Anthony Gomes (the Plaintiffs)
I.
The Plaintiffs work as servers for hotels and restaurants at the National Harbor complex in Prince George’s County, Maryland.
In response, the Plaintiffs filed suit against the Defendants, alleging that the tip-pooling arrangement violated the FLSA,
The district court, following a hearing, granted the Defendants’ Rule 12(b)(6) motion to dismiss. As to the FLSA count, the court held that because the Plaintiffs were paid the minimum wage,
II.
The Plaintiffs continue to press their claim that the Defendants violated the FLSA by requiring them to join the tip-pooling arrangement.
The FLSA is best understood as the “minimum wage/maximum hour law.” Monahan v. County of Chesterfield,
Here, the Plaintiffs concede that they are paid a full minimum wage absent tips. See J.A. 100 (“
In determining the wage an employer is required to pay a tipped employee, the amount paid such employee by the employee’s employer shall be an amount equal to&emdash;(1) the cash wage paid such employee which for purposes of such determination shall be not less than the cash wage required to be paid such an employee on August 20,1996; and (2) an additional amount on account of the tips received by such employee which amount is equal to the difference between the wage specified in paragraph (1) and the wage in effect undersection 206(a)(1) of this title.
The additional amount on account of tips may not exceed the value of the tips actually received by an employee.
The preceding 2 sentences shall not apply with respect to any tipped employee unless such employee has been informed by the employer of the provisions of this subsection, and all tips received by such employee have been retained by the employee, except that this subsection shall not be construed to prohibit the pooling of tips among employees who customarily and regularly receive tips.
29 U.S.C. § 203(m) .
In other words,
Here, the Plaintiffs argue that, because they were never informed of the FLSA’s tip-credit provision and the tip-pooling arrangement includes employees that are not regularly tipped (such as busboys), the Defendants’ tip-pooling arrangements were invalid. Accordingly, in the Plaintiffs’ view, “all tips received by” them must be “retained by” them and the Defendants must compensate them for these lost “tip” wages. Even if these words, in isolation, could somehow be read to create such a right,
III.
Here, the Plaintiffs concede that their wages do not fall below the statutory minimum, and the “the statutory language,” of the FLSA, including
AFFIRMED
Notes
. A third plaintiff, Patricio Trejo, did not file an appearance on appeal and was dismissed pursuant to Local Rule 45 for failure to prosecute.
.The facts are taken from the Plaintiffs’ complaint. Because we are reviewing the district court’s grant of a Rule 12(b)(6) motion to dismiss, we accept the allegations in the complaint as true and construe them in the light most favorable to the Plaintiffs. See Coleman v. Maryland Court of Appeals,
. Chevron U.S.A., Inc. v. Natural Resources Defense Council, Inc.,
. The Plaintiffs did not appeal the district court's dismissal of the collective bargaining or Maryland state law claims.
. After briefing concluded, the Government filed an amicus brief primarily arguing that
. The Secretary of Labor is empowered to bring an action for unpaid wages under
. For instance, in Richard, we affirmed a damages award when the employer (Marriott) attempted to use the tip credit to satisfy its minimum wage obligations but failed to comply with the requirements of
. The Government, in its amicus brief, agrees with the conclusion that there is no viable private right of action under the FLSA in this case because the "plaintiffs are not pursuing minimum wage claims or overtime claims, but instead seek only to collect improperly withheld tips.” (Gov’t Amicus Br. at 12).
Concurrence Opinion
concurring in the judgment:
I concur in the majority’s holding that the Fair Labor Standards Act (“FLSA” or the “Act”) does not provide a private cause of action to remedy the particular violations alleged by the Plaintiffs in this case. I write separately to explain why I think we can and should reach that result without commenting on the scope of the substantive protections of
I.
As we decide it today, this case is not about the nature of the rights afforded by the FLSA, but about how those rights are to be enforced. The FLSA establishes two separate means of enforcement: a private right of action for aggrieved employees, and a public enforcement power wielded by the Wage and Hour Division of the Department of Labor (“DOL”). See Fair Labor Standards Act of 1938, Pub.L. No. 75-718, ch. 676, § 16-17, 52 Stat. 1060, 1069 (codified as amended at
This hybrid enforcement scheme produces a familiar scenario, under which a provision of the FLSA or its implementing regulations may bind an employer but not subject the employer to private civil suit. Cf. Alden v. Maine,
And on that latter question (and only that latter question), this is a perfectly straightforward case: As DOL urges in its amicus brief, and as the majority holds, the Plaintiffs have no private cause of action to pursue their particular tip-related claims. The injury that the Plaintiffs allege — that they have been required to share their tips with other employees in a way that does not conform to
Any employer who violates the provisions ofsection 206 orsection 207 of this title [addressing minimum wage and overtime compensation] shall be liable to the employee or employees affected in the amount of their unpaid minimum wages, or their unpaid overtime compensation, as the case may be, and in an additional equal amount as liquidated damages.
By its terms, then,
In my view, that conclusion — advanced by DOL in its amicus brief, endorsed by the Defendants, and left unchallenged by the Plaintiffs — effectively disposes of this case. It may be, as the majority suggests, that the Plaintiffs, read very generously, can be understood to advance an alternative argument: that § 2D3(m) itself confers on them not only a substantive right to retain their tips but also a private cause of action to enforce that right through a suit for damages. But if so, it makes no difference: Any such argument is plainly unavailing, and may be dispensed with quickly and simply under the established principles that govern implied causes of action, see, e.g., Venkatraman v. REI Sys., Inc.,
But the Plaintiffs have not once suggested that we pursue our standard implied cause of action analysis, and that is just as well. Absent “strong indicia of a contrary congressional intent,” we are to presume that Congress “provided precisely the remedies it considered appropriate,” Middlesex Cnty. Sewerage Auth. v. Nat’l Sea Clammers Ass’n,
II.
On those grounds, I concur in the majority’s holding that the FLSA provides no private cause of action under which the Plaintiffs may bring their challenges to the Defendants’ tip-pooling practices. I write separately only because I am concerned that in reaching this straightforward conclusion about remedies, the majority has said more than is necessary about the distinct question of substantive rights, and in particular, about the scope of the protection afforded employees by § ,203(m). See Maj. Op. at 447-48.
We always are well advised to say no more than necessary to decide the case at hand. But caution is particularly warranted here, because the meaning of
A 2011 DOL regulation addresses this question directly, providing that “[t]ips are the property of the employee whether or not the employer has taken a tip credit under [
If ... the FLSA places limitations on an employer’s use of its employees’ tips only in the context of a tip credit, an employer could simply eschew the- tip credit and use a greater part of its employees’ tips toward its minimum wage obligations than permitted under [§ 203(m) ].... If an employer could avail itself of this loophole, it would have no reason to ever elect.the tip credit because, instead of using only a portion of its employees’ tips to fulfill its minimum wage obligation, it could use all of*452 its employees’ tips to fulfill its entire minimum wage obligation to the tipped employees or other employees.
Id. at 18,842; see also Gov’t Amicus Br. at 16.
The validity of that regulation has been put squarely at issue in a series of federal court cases. See, e.g., Oregon Rest. & Lodging v. Solis,
That would be particularly unfortunate in this case, because substantive discussion of
. Indeed, in light of the Plaintiffs’ failure to address or even to cite
. This does not mean that an employee lacks a private cause of action under
. DOL was granted leave to file an amicus brief, in which it argued first for dismissal of the Plaintiffs' claims for want of a cause of action and then defended its regulation. But because DOL was not permitted to participate at oral argument, we have had no opportunity to question DOL or to clarify its position.