MIAMI — Several Florida residents who filed a class action suit against Galiano Restaurant and its corporate manager alleging they were paid about $2 an hour in violation of minimum wage laws were denied a summary judgment due to "shortfalls" in their documentation of tips and hours.
According to the June 7 U.S. District Court for the Southern District of Florida filing, plaintiffs Omelia Del Rosario Gutierrez, Ana Castillo, Cecila Ramirez Brito and others petitioned the court for a summary judgment in their complaint against defendants Galiano Enterprises of Miami Corp., doing business as Galiano Restaurant and Sultan Mamun.
The plaintiffs allege Galiano Restaurant and its corporate manager, Mamun, failed to pay them overtime and that they were paid below minimum wage in violation of the Fair Labor Standards Act (FLSA), federal minimum wage law and the Florida minimum wage law.
The defendants argue that Mamun did not run the day-to-day operations and, instead, the restaurant's manager made financial decisions. They said his position does not qualify him as "an employer" relating to FLSA. They also argue that they relied on "tip credit" as a factor for wages. The plaintiffs argue they were not given notice about the "tip credit" and that the restaurant had no "system or policy" to monitor tips. They contend Mamun is a shareholder in the company, signed employee checks and is the only "signator on the restaurant's bank accounts."
U.S. Magistrate Judge Edwin Torres stated the argument made by the plaintiffs "lacks merit." He concluded that even if the defendants lacked "time records or a system to track tips does not defeat an employer’s use of a tip credit." He also stated the plaintiffs had "conflicting evidence" as to whether the restaurant and its manager kept track of tips and employee hours.
The court therefore denied the plaintiffs' motion for summary judgment.