Employees v Sparks Steak House
Sparks Steak House has settled a class-action lawsuit accusing the famed Midtown eatery of shorting waiters on tips for over $3 million
The suit charged the restaurant had illegally deducted money from the "tip pool" -- which was supposed to be shared among about 60 waiters -- to pay other workers, including bartenders, the pastry chef, the wine-cellar master and banquet manager.
It sought $5 million for the shorted waiters, and settled for $3.15 million.
The deal is believed to be the largest ever for a single restaurant in a tip-skimming case.
The money will be distributed in proportion to how long a waiter worked, and more than 40 waiters should receive over $20,000, court documents show.
The deal was approved by Manhattan federal court Judge Paul Crotty, who at a hearing last month called the settlement "the right thing to do."
According to an industry survey released earlier this year, it's the fifth-highest-grossing restaurant in the city and 14th-highest in the country, having raked in $19 million in 2008.
For more information please contact:
Lou Pechman
Berke-Weiss & Pechman LLP
488 Madison Avenue, 11th Floor
New York NY 10022
Phone: 212-583-9500
Fax: 212-308-8582
