According to, servers at a number of Houlihan’s restaurant locations in New Jersey have filed a class action against the restaurant group’s owner, ACE Restaurant Group, Inc. alleging wage and hour violations under the Federal Fair Labor Standards Act (FLSA).

Under the law, employers are permitted to pool tips only when it is “limited to employees who customarily and regularly receive tips.” In the restaurant industry, servers typically receive tips, unlike kitchen expediters and hostesses.

The plaintiffs assert ACE has unlawfully taken advantage of FLSA guidelines by tip-pooling among its kitchen expediters, hostesses, and servers, and further claim that the money they earn from ACE’s tip-pooling policy, combined with their regular wages, does not meet minimum wage requirements.

All restaurant employees are due proper wages according to the Fair Labor Standards Act, even those who earn wages through a combination of hourly rate and tips. The attorneys in Sommers Schwartz’s Employment Litigation Group have represented thousands of plaintiffs in wage and hour lawsuits, and are prepared to answer any questions you have regarding your employment rights – contact us today.

Jason J. Thompson

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Jason J. Thompson

Jason Thompson is a nationally board certified trial attorney and co-chairs Sommers Schwartz’s Complex Litigation Department. He has a formidable breadth of litigation experience, including class action and multidistrict litigation (MDL), and practices nationwide in both state and federal courts.