1 - Collective and Class Action Complaint - FILED
1 - Collective and Class Action Complaint - FILED
1 - Collective and Class Action Complaint - FILED
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Plaintiff,
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: COLLECTIVE AND CLASS
-against: ACTION COMPLAINT
UNION SQUARE HOSPITALITY GROUP, LLC, :
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GRAMERCY TAVERN CORP and GT
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OPERATING COMPANY LLC,
: Jury Trial Demanded
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Defendants.
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Plaintiffs Uzzol Siddiky and Kawsar A. Maruf (Plaintiffs), on behalf of themselves and
all other similarly-situated individuals, by and through their undersigned counsel Wigdor LLP, as
and for their Complaint in this action against Defendants Union Square Hospitality Group, LLC
(Union Square), Gramercy Tavern Corp. (Gramercy Tavern) and GT Operating Company
LLC(collectively, Defendants), hereby allege as follows:
NATURE OF THE CLAIMS
1.
New York restaurant mogul Danny Meyer, the celebrity chef who owns and
operates the Michelin star-rated Gramercy Tavern, is the so-called poster child of all that is
good about American food today. Unfortunately, for service employees of Union Square
Hospitality Group, the parent company of Gramercy Tavern, Shake Shack and Union Square
Caf, among others, all that is good about American food today appears to include the practice of
nickel and diming employees out of wages and tips they are lawfully entitled to receive.
2.
As detailed below, Plaintiffs, who are former service employees of the famed
Gramercy Tavern, located in the Flatiron District, were cheated out of tips and other wages
through Defendants ongoing unlawful scheme of distributing the hard-earned tips paid to
Plaintiffs and other similarly situated service employees to managers and other tip-ineligible
employees.
Defendants did this in an attempt at robbing Peter to pay Paul; that is, to
unlawfully augment the wages Defendants pay to tip-ineligible employees with the tips earned
by Plaintiffs and other service staff through their hard work and dedicated service to customers,
resulting in higher profits to Defendants.
3.
busser, Plaintiff Maruf, who was also employed as a busser, and other similarly situated service
employees were subjected to numerous violations of federal and state labor laws, including (i)
minimum wage violations under the Fair Labor Standards Act (FLSA), 29 U.S.C. 201 et
seq., and the New York Labor Law (NYLL), 650 et seq., and (ii) illegal retention of
employee gratuities and charges purported to be gratuities in violation of NYLL 196-d.
4.
Plaintiffs claims under the FLSA are brought as a collective action, pursuant to
29 U.S.C. 216(b), on behalf of themselves and on behalf of all other similarly-situated persons
who were employed by Defendants as front of house service employees, including but not
limited to service staff, bussers, runners, captains and any other service personnel who regularly
and customarily receive tips from patrons or customers, who were not paid the prevailing
minimum wage for all hours worked during the full statute of limitations period (the FLSA
Collective Period). Plaintiffs and all such other similarly-situated persons are jointly referred to
herein as the FLSA Collective.
5.
Plaintiffs claims under the NYLL are brought as a class action pursuant to
Federal Rule of Civil Procedure Rule (FRCP) 23 on behalf of themselves and on behalf of all
other similarly-situated persons who were employed by Defendants as front of house service
employees, including but not limited to service staff, bussers, runners, captains and any other
service personnel who regularly and customarily receive tips from patrons or customers who: (a)
were not paid the prevailing minimum wage for all hours worked; and (b) had gratuities and/or
charges purported to be gratuities unlawfully retained from their wages. Plaintiffs and all
other such similarly-situated persons are jointly referred to herein as the NYLL Class.
JURISDICTION AND VENUE
6.
Pursuant to 28 U.S.C. 1331 and 1343, the Court has subject matter jurisdiction
over this action because this action involves federal questions regarding the deprivation of
Plaintiffs rights under the FLSA. Pursuant to 28 U.S.C. 1367(a), the Court has supplemental
jurisdiction over Plaintiffs related claims under the NYLL.
7.
substantial part of the events or omissions giving rise to this action occurred in this district.
8.
Plaintiffs claims are properly consolidated as a single action because their claims
involve the same Defendants, arise from the same nexus of facts and circumstances, and involve
nearly identical issues of fact and law.
PARTIES
9.
York limited liability company, located at 24 Union Square East, New York, New York 10003.
Upon information and belief, Union Square owns and operates Gramercy Tavern., a restaurant
located at 42 East 20th Street, New York, New York, 10003. Union Square was an employer
within the meaning of all applicable statutes, and an enterprise engaged in commerce as defined
by 203(r) and (s) of the FLSA, with annual gross volume business done in an amount not less
than $500,000.
10.
corporation, located at 42 East 20th Street, New York, New York 10003. At all relevant times,
Gramercy Tavern was an employer within the meaning of all applicable statutes, and an
enterprise engaged in commerce as defined by 203(r) and (s) of the FLSA, with annual gross
volume business done in an amount not less than $500,000.
11.
liability company that is registered to accept service of process at 24-32 Union Square East, 6th
Floor, New York, New York 10003. Plaintiff and the FLSA Collective and NYLL Class
members were issued paychecks and paystubs issued by GT Operating. At all relevant times,
GT Operating Company LLC was an employer within the meaning of all applicable statutes,
and an enterprise engaged in commerce as defined by 203(r) and (s) of the FLSA, with annual
gross volume business done in an amount not less than $500,000.
12.
Plaintiffs and the members of the FLSA Collective and NYLL Class.
13.
At all relevant times, Defendants exercised control over the terms and conditions
of Plaintiffs employment and those of similarly situated employees, including the power to (i)
fire and hire, and (ii) determine rate and method of pay.
14.
At all relevant times, the work performed by Plaintiffs and similarly situated
15.
Plaintiff Uzzol Siddiky is an adult resident of New York State who resides in
Queens County, and was employed by Defendants as a busser from in or about July 2015 to
November 2015. At all relevant times, Mr. Siddiky was an employee within the meaning of
all applicable statutes. Plaintiff Siddiky will file a Consent to Participate as a Plaintiff in this
action.
16.
Plaintiff Kawsar A. Maruf is an adult resident of New York State who resides in
Bronx County, and was employed by Defendants as a busser from in or about June 2010 to on or
about December 31, 2012. At all relevant times, Mr. Maruf was an employee within the
meaning of all applicable statutes. Plaintiff Maruf will file a Consent to Participate as a Plaintiff
in this action.
FACTUAL ALLEGATIONS
Minimum Wage Violations
17.
Federal and State law requires employers to pay employees a minimum wage.
Defendants were arguably permitted under the FLSA and NYLL to pay certain tipped employees
at a statutory hourly rate that is less than the standard hourly minimum wage rate a tip credit
allowance. A tip credit is permitted provided that the tips or gratuities that such tipped
employee is expected to receive, when added to the hourly wages, meet or exceed the standard
hourly minimum wage. Further, the employer must make sure that service employees retain one
hundred (100%) percent of all tips and gratuities received.
18.
Here, Defendants were not entitled to avail themselves of the reduced minimum
wage by applying the tip credit allowance for Plaintiffs, the FLSA Collective, and the NYLL
Class, because, inter alia, Defendants retained a portion of the tips shared by employees, and/or
required them to share and/or pool their tips with non-service employees such as Expeditors,
Polishers, Wine Managers, and other employees who did not regularly and customarily perform
tipped duties.
19.
Expeditors and Polishers did not perform any direct customer service, were not
engaged in customarily tipped work, and did not have meaningful interaction with customers.
20.
customers view.
21.
A Polishers duties were to polish glassware out of the view of and without any
In addition, Wine Managers and other employees with managerial authority also
Wine Managers had the authority to fire employees. Wine Managers also had the
authority to discipline employees, and control how employees performed their work. In fact,
employees are required to check in with Wine Managers before they are able to go home after
the conclusion of their shifts, so that Wine Managers can check to see that the work required of
employees is complete.
24.
were obligated to pay Plaintiffs, the FLSA Collective, and the NYLL Class the standard hourly
minimum wage rate, and not any reduced minimum wage through application of a tip credit.
25.
At all relevant times, Defendants knew that nonpayment of the minimum wage
would economically injure Plaintiffs, the FLSA Collective, and the NYLL Class and violated
Federal and State laws.
In addition to unlawfully distributing the tips and gratuities that Plaintiffs and the
FLSA Collective and NYLL Class earned to non-tipped employees and managers, during
Plaintiffs employment, Defendants held private events at Gramercy Tavern for which
Defendants clients were required to pay an automatic/mandatory service charge or charge
with a similar name of approximately 20% of the total bill (referred to herein as the Service
Charge).
27.
the Service Charge was a gratuity by, inter alia, calling it a service charge, representing to
customers that the charge was a gratuity, and failing to tell customers that the charge was not a
gratuity.
28.
Defendants private event customers did not ordinarily leave any additional
gratuity for Plaintiffs and the NYLL Class members other than what is paid to Defendants
pursuant to the Service Charge.
29.
Throughout the relevant time period, Defendants had knowledge of NYLL 196-d
and the legal requirement that service employees are entitled to the gratuities, and that it is
unlawful for gratuities to be retained by the employer.
30.
which should have been distributed to Plaintiffs and the NYLL Class, in violation of NYLL
196-d.
31.
By not distributing the entirety of the Service Charge to Plaintiffs and the NYLL
Class members, Defendants unlawfully demanded and retained the gratuities or charges
purported to be gratuities. Defendants did not allow Plaintiffs and the NYLL Class members to
retain all of the gratuities and charges purported to be gratuities they had earned.
FLSA COLLECTIVE ACTION ALLEGATIONS
32.
Plaintiffs bring their FLSA claims as a collective action pursuant to the FLSA on
behalf of themselves and on behalf of all other similarly-situated persons who were employed by
Defendants as front of house service employees, including but not limited to service staff,
bussers, runners, captains and any other service personnel who regularly and customarily receive
tips from patrons or customers or other similar tipped positions during the FLSA Collective
Period.
33.
At all relevant times, Plaintiffs and the other members of the FLSA Collective
were similarly situated, had substantially similar job requirements, were paid in the same manner
and under the same common policies, plans and practices, and were subject to Defendants
practice of willfully failing and refusing to pay them at the legally required minimum wage for
all hours worked, retaining tips for themselves, and allowing non-tipped employees and/or
employees with meaningful managerial authority to share in their tips.
34.
During the FLSA Collective Period, Defendants were fully aware of the duties
performed by Plaintiffs and the FLSA Collective, and that those duties were not exempt from the
minimum wage provisions of the FLSA.
35.
U.S.C. 206 by not paying the FLSA Collective and Plaintiffs the prevailing minimum wage for
all hours worked.
36.
and without a good faith basis, and significantly damaged Plaintiffs and the FLSA Collective.
37.
FLSA Collective for the full amount of their unpaid minimum wage, plus an additional equal
amount as liquidated damages, plus the attorneys fees and costs incurred by Plaintiffs and the
FLSA Collective.
38.
While the exact number of the FLSA Collective is unknown to Plaintiffs at the
present time, upon information and belief, there are at least one hundred (100) other similarlysituated persons who were employed by Defendants as front of house service employees,
including but not limited to service staff, bussers, runners, captains and any other service
personnel who regularly and customarily receive tips from patrons or customers or other similar
tipped positions during the FLSA Collective Period.
39.
Accordingly, Defendants should be required to provide Plaintiffs with a list of all persons
employed by Defendants as front of house service employees, including but not limited to
service staff, bussers, runners, captains and any other service personnel who regularly and
customarily receive tips from patrons or customers or other similar tipped positions during the
FLSA Collective Period, along with their last known addresses, telephone numbers and e-mail
addresses, so Plaintiffs can give the FLSA Collective notice of this action and an opportunity to
make an informed decision about whether to participate in it.
RULE 23 CLASS ACTION ALLEGATIONS
40.
Plaintiffs bring their NYLL claims as a class action pursuant to Federal Rule of
Civil Procedure 23 on behalf of themselves and on behalf of all other similarly-situated persons
who were employed by Defendants as front of house service employees, including but not
limited to service staff, bussers, runners, captains and any other service personnel who regularly
and customarily receive tips from patrons or customers or other similar tipped positions who
were: (i) not paid the prevailing minimum wage for all hours worked; and (ii) unlawfully denied
tips and gratuities.
41.
The basic job duties of the NYLL Class were the same as or substantially similar
to those of Plaintiffs, and the NYLL Class were paid in the same manner and under the same
common policies, plans and practices as Plaintiffs.
42.
The NYLL Class, like Plaintiffs, all have been subject to the same unlawful
policies, plans and practices of Defendants, including not paying the prevailing minimum wage
for all hours worked, and unlawfully retaining gratuities.
43.
During the NYLL Class Period, Defendants were fully aware of the duties
performed by Plaintiffs and the NYLL Class, and that those duties were not exempt from the
minimum wage and other applicable provisions of the NYLL and/or its regulations.
44.
NYLL and/or its regulations. Defendants violations of the NYLL and/or its regulations were
willful, repeated, knowing, intentional and without a good faith basis, and significantly damaged
Plaintiffs and the NYLL Class.
45.
NYLL Class for the full amount of their unpaid minimum wages, and the tips or gratuities
retained by Defendants and/or distributed to tip ineligible employees, plus an additional amount
as liquidated damages, plus the attorneys fees and costs incurred by Plaintiffs and the NYLL
Class.
46.
Certification of the NYLL Class claims as a class action is the most efficient and
economical means of resolving the questions of law and fact common to Plaintiffs claims and
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the claims of the NYLL Class. Plaintiffs have standing to seek such relief because of the adverse
effect that Defendants unlawful compensation policies and practices have had on them
individually and on members of the NYLL Class. Without class certification, the same evidence
and issues would be subject to re-litigation in a multitude of individual lawsuits with an attendant
risk of inconsistent adjudications and conflicting obligations. Certification of the NYLL Class is
the most efficient and judicious means of presenting the evidence and arguments necessary to
resolve such questions for Plaintiffs, the NYLL Class and Defendants.
47.
Plaintiffs claims raise questions of law and fact common to the NYLL Class.
These common questions of law and fact arise from the same course of events,
and each class member will make similar legal and factual arguments to prove liability.
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49.
Plaintiffs are members of the NYLL Class that they seek to represent. Plaintiffs
claims are typical of the claims of the NYLL Class. The relief Plaintiffs seek for the unlawful
policies and practices complained of herein are also typical of the relief which is sought on
behalf of the NYLL Class.
50.
Plaintiffs interests are co-extensive with those of the NYLL Class that they seek
to represent in this case. Plaintiffs are willing and able to represent the NYLL Class fairly and to
vigorously pursue their similar individual claims in this action. Plaintiffs have retained counsel
who are qualified and experienced in labor and employment class action litigation, and who are
able to meet the time and fiscal demands necessary to litigate a class action of this size and
complexity. The combined interests, experience and resources of Plaintiffs and their counsel to
litigate the individual and NYLL Class claims at issue in this case satisfy the adequacy of
representation requirement of Fed. R. Civ. P. 23(a)(4).
51.
NYLL Class, making final injunctive and declaratory relief appropriate with respect to the
NYLL Class as a whole.
52.
Injunctive and declaratory relief are the predominant relief sought in this case
because they are the culmination of the proof of Defendants individual and class-wide liability
and the essential predicate for Plaintiffs and the NYLL Class entitlement to monetary and nonmonetary remedies to be determined at a later stage of the proceedings.
53.
The common issues of fact and law affecting Plaintiffs claims and those of the
NYLL Class members, including the common issues identified above, predominate over any
issues affecting only individual claims.
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54.
A class action is superior to other available means for the fair and efficient
adjudication of Plaintiffs claims and the claims of the NYLL Class. There will be no difficulty
in the management of this action as a class action.
55.
The cost of proving Defendants violations of the NYLL and the supporting New
York State Department of Labor regulations makes it impracticable for Plaintiffs and the NYLL
Class to pursue their claims individually. Maintenance of a class action promotes judicial
economy by consolidating a large class of plaintiffs litigating identical claims. The claims of the
NYLL Class interrelate such that the interests of the members will be fairly and adequately
protected in their absence. Additionally, the questions of law and fact common to the NYLL
Class arise from the same course of events and each class member makes similar legal and
factual arguments to prove the Defendants liability.
56.
While the exact number of the NYLL Class is unknown to Plaintiffs at the present time, upon
information and belief, there are at least one hundred (100) similarly-situated persons who
were/are employed by Defendants as front of house service employees, including but not limited
to service staff, bussers, runners, captains and any other service personnel who regularly and
customarily receive tips from patrons or customers or other similar tipped positions during
the NYLL Class Period.
57.
Plaintiffs are currently unaware of the identities of the NYLL Class. Accordingly,
Defendants should be required to provide Plaintiffs with a list of all persons employed by
Defendants as front of house service employees, including but not limited to service staff,
bussers, runners, captains and any other service personnel who regularly and customarily receive
tips from patrons or customers or other similar tipped positions during the NYLL Class
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Period, along with their last known addresses, telephone numbers and e-mail addresses, so
Plaintiffs can give the NYLL Class notice of this action and an opportunity to make an informed
decision about whether to participate in it.
FIRST CLAIM FOR RELIEF
(FLSA Minimum Wage Violations)
(On Behalf of Plaintiffs and the FLSA Collective)
58.
incorporate by reference all preceding paragraphs as if they were set forth again herein.
59.
The FLSA requires covered employers, such as Defendants, to pay all non-
exempt employees the prevailing minimum wage for all hours worked. Plaintiffs and the FLSA
Collective were not exempt from the requirement that Defendants pay them the prevailing
minimum wage under the FLSA.
60.
During the FLSA Collective Period, Defendants did not pay Plaintiffs and the
FLSA Collective the prevailing minimum wage for all hours worked for Defendants.
61.
As a result of Defendants failure to pay Plaintiffs and the FLSA Collective the
prevailing minimum wage for all hours worked, Defendants violated the FLSA.
62.
63.
Defendants violations of the FLSA have significantly damaged Plaintiffs and the
FLSA Collective and entitle them to recover the total amount of their unpaid minimum wages, an
additional equal amount in liquidated damages, and attorneys fees and costs.
SECOND CLAIM FOR RELIEF
(NYLL Minimum Wage Violations)
(On Behalf of Plaintiffs and the NYLL Class)
64.
Plaintiffs, on behalf of themselves and the NYLL Class, reallege and incorporate
by reference all preceding paragraphs as if they were set forth again herein.
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65.
The NYLL requires covered employers, such as Defendants, to pay all non-
exempt employees the prevailing minimum wage for all hours worked. Plaintiffs and the NYLL
Class were not exempt from the requirement that Defendants pay them the prevailing minimum
wage under the NYLL.
66.
During the NYLL Class Period, Defendants did not pay Plaintiffs and the NYLL
Class the prevailing minimum wage for all hours worked for Defendants.
67.
As a result of Defendants failure to pay Plaintiffs and the NYLL Class the
prevailing minimum wage for all hours, Defendants violated the NYLL.
68.
69.
Defendants violations of the NYLL have significantly damaged Plaintiffs and the
NYLL Class and entitle them to recover the total amount of their unpaid minimum wage, an
additional amount in liquidated damages, and attorneys fees and costs.
THIRD CLAIM FOR RELIEF
(NYLL Violations for Illegal Deductions from Gratuities)
(On Behalf of Plaintiffs and the NYLL Class)
70.
Plaintiffs, on behalf of themselves and the NYLL Class, reallege and incorporate
by reference all preceding paragraphs as if they were set forth again herein.
71.
Plaintiffs and the NYLL Class members were employed by Defendants within the
N.Y. Lab. Law 196-d bars an employer from retaining any part of a gratuity or
gratuities and charges purported to be gratuities from Plaintiffs and the NYLL Class,
particularly during private events, in violation of NYLL 196-d.
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74.
Due to Defendants NYLL violations, Plaintiffs and the NYLL Class members are
entitled to recover from Defendants the amount of retained gratuities, liquidated damages,
attorneys fees and costs, and interest.
FOURTH CLAIM FOR RELIEF
(NYLL Violations for Illegal Distribution of Gratuities)
(On Behalf of Plaintiffs and the NYLL Class)
75.
Plaintiffs, on behalf of themselves and the NYLL Class, reallege and incorporate
by reference all preceding paragraphs as if they were set forth again herein.
76.
Plaintiffs and the NYLL Class members were employed by Defendants within the
N.Y. Lab. Law 196-d bars an employer from retaining any part of a gratuity or
During the NYLL Period, Defendants unlawfully retained gratuities and charges
purported to be gratuities from Plaintiffs and the NYLL Class and distributed them to tipineligible employees, in violation of NYLL 196-d.
79.
Due to Defendants NYLL violations, Plaintiffs and the NYLL Class members are
entitled to recover from Defendants the amount of retained gratuities, liquidated damages,
attorneys fees and costs, and interest.
PRAYER FOR RELIEF
WHEREFORE, Plaintiffs, on behalf of themselves, the FLSA Collective and the NYLL
Class, respectfully requests that this Court:
A.
Declare that the practices complained of herein are unlawful under applicable
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B.
216, and direct Defendants to provide Plaintiffs with a list of all members of the FLSA
Collective, including all last known addresses, telephone numbers and e-mail addresses of each
such person, so Plaintiffs can give such persons notice of this action and an opportunity to make
an informed decision about whether to participate in it;
C.
result of Defendants violations of the FLSA, and award those damages against Defendants and
in favor of Plaintiffs and the FLSA Collective, plus such pre-judgment and post-judgment
interest as may be allowed by law;
D.
liquidated damages because Defendants violations were willful and/or without a good faith
basis;
E.
23, and direct Defendants to provide Plaintiffs with a list of all members of the NYLL Class,
including all last known addresses, telephone numbers and e-mail addresses of each such person,
so Plaintiffs can give such persons notice of this action and an opportunity to make an informed
decision about whether to participate in it;
F.
class counsel;
G.
Determine the damages sustained by Plaintiffs and the NYLL Class as a result of
Defendants violations of the NYLL and/or its regulations, and award those damages against
Defendants and in favor of the Plaintiffs and the NYLL Class, plus such pre-judgment and postjudgment interest as may be allowed by law;
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H.
Award Plaintiffs and the NYLL Class an additional amount as liquidated damages
pursuant to the NYLL because Defendants violations were willful and/or without a good faith
basis;
I.
Award Plaintiffs, the FLSA Collective and the NYLL Class their reasonable
attorneys fees and costs and disbursements in this action including, but not limited to, any
accountants or experts fees; and
J.
Grant Plaintiffs, the FLSA Collective and the NYLL Class such other and further
Respectfully submitted,
WIGDOR LLP
By: _____________________________
Jeanne Christensen
Tanvir H. Rahman
85 Fifth Avenue
New York, NY 10003
Telephone: (212) 257-6800
Facsimile: (212) 257-6845
jchristensen@wigdorlaw.com
trahman@wigdorlaw.com
Attorneys for Plaintiffs and the Proposed
FLSA Collective and NYLL Class
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