A federal judge rejected a proposed $1.75 million settlement to resolve claims by servers at Jose Pepper’s that they were denied minimum wage and overtime, and were required to work before clocking in.
The Kansas News Service reports that the judge did agree to certify the case as a collective action under federal labor law.
The restaurant chain was sued just over a year ago, with allegations that servers were allowed to work overtime only if they didn’t clock in, asked to report overtime under other employees’ names, and had their reported overtime hours removed from the timekeeping system.
It was also claimed servers were asked to work only for tips during the COVID-19 pandemic, asked to spend more than 20% of their working time on non-tipped work, and required to share tips with non-tipped workers.
Jose Pepper’s disputed owing any unpaid minimum wage or overtime compensation.