Chili's workers sue to end New York's lower wage for tipped staff

Three former Chili's employees have filed a lawsuit that targets a basic rule of restaurant pay. They want a federal court to strike down New York's lower minimum wage for workers who earn tips. The suit was filed Friday in federal court in Brooklyn against Brinker International, which runs Chili's.

What the lawsuit says

The workers argue that the rule lets Brinker force employees to rely on tips. They say that exposes them to unlawful discrimination, including sexual and racial harassment. The suit says Brinker promotes a culture in which servers make customers "feel special," even at the expense of their dignity and safety.

It also challenges how Chili's uses customer ratings to decide schedules, shifts and table assignments. The suit says ratings can be racially biased. It also says servers may find it hard to turn down unwanted advances for fear of a poor rating.

The three plaintiffs worked at a Chili's in the Glendale section of Queens. They say they were routinely subjected to sexual advances and inappropriate comments, and that management did not do enough to protect workers.

How tipped pay works

Under federal law and most state laws, employers may pay a lower base wage to workers who earn tips, as long as tips make up the difference. New York's minimum wage is $16 an hour, or $17 in and around New York City. Tipped food service workers there can be paid $10.70 or $11.35 an hour.

The federal tipped minimum is $2.13 an hour, compared with $7.25 for other workers. It applies in states that do not set their own minimums. Worker advocates have long argued that tips are unpredictable and should add to pay, not make up most of it.

Who it could touch

Brinker operates more than 1,200 Chili's restaurants in the US, including 36 in New York. It also owns Maggiano's Little Italy, which has about 50 US locations. The plaintiffs' lawyers say they plan to widen the case to a nationwide class of Chili's workers.

Because most states share New York's approach, the outcome could matter well beyond one chain. If the case succeeds, restaurant pay and menu prices in New York could change, and tips could matter less to servers' incomes.

What is not known yet

• Brinker did not respond to a request for comment.
• The New York Attorney General's office has not yet responded about the challenge to the state law.
• The case is a proposed class action, so a court has not yet ruled on any of the claims.

No timeline for a decision has been reported. For now, tipped pay in New York works the same as before.