An employee is suing Charleston Grill for miscalculating overtime wages and pushing a bad tip pool

An employee of Charleston Grill has filed a lawsuit claiming that the restaurant did not pay him and other employees adequate overtime wages and that it made them share their tips with invalid staff.

The employee, Charles Knecht, has been working as a front server at the upscale restaurant since at least October 2012, according to the complaint filed on Dec. 22.

Under the Fair Labor Standards Act, a “valid” tip pool arrangement must only include employees “who customarily and regularly receive tips.” The employee must also be informed of the tip credit provisions.

Knecht, who is represented by attorney Marybeth Mullaney, claims that he and other employees were never told that tips would be used to satisfy the Grill’s minimum wage obligation, nor were they told how much they would be contributing to a mandatory tip pool either before or after they were hired. The tip pool includes all kinds of workers at the restaurant, such as front servers, back servers, server assistants, hostesses, bartenders, and food runners.

The complaint states that food runners at the Charleston Grill differ from other restaurants’ food runners. At the Grill, food runners report to the chef and do not have any direct interaction with guests.

The Trump administration is currently seeking to change the rules governing tip pools in a proposal published on Dec. 5. The new rule, which is open to comments until Feb. 5, would allow employers who pay employees the federal minimum wage to include back-of-house employees in their tip pools.

Knecht, however, was paid less than the $7.25 federal minimum wage. If his allegations are correct, Charleston Grill would have invalidated its ability to pay Knecht the $2.75 per hour it paid him.

In addition, tipped employees working overtime are supposed to earn one-and-a-half times the federal minimum wage. Knecht claims he makes $4.12 when he works over 40 hours a week, according to the complaint.

The lawsuit names the Charleston Grill as well as the Charleston Place LLC and Charleston Place Holdings, which own and operate the restaurant.

The collective action suit is filed on behalf of Knecht and “all others similarly situated.” Knecht is seeking attorneys fees and costs, an amount equal to his wages at the applicable hourly rate of $7.25, an award of compensatory damages equal to the unpaid overtime and minimum wages owed, and award of liquidated damages equal to the compensatory damages.

“The recent lawsuit against Charleston Place alleges violations of the tip pool, tip credit, and overtime requirements, but also alleges violations of the notice requirement,” explains attorney Lucy Sanders of Charleston’s Bloodgood & Sanders. “It is important for all employers to carefully follow [Fair Labor Standards Act] requirements and to keep records of wages paid to employees and notices provided to employees. Proper record-keeping allows employers to fully respond to lawsuits such as this one. In this case, the employer’s deadline to respond has not yet expired. The response will shed light on whether the employer disputes the Plaintiff’s claims on factual grounds, legal grounds, or both.”

Representatives from the Belmond Charleston Place and Charleston Grill did not immediately respond to requests for comment.