/ CORRECTION - Dave & Buster's Wins California Tip Pool Case
March 05 2009 - 2:43PM
Marketwired
In the news release, "Dave & Buster's Wins California Tip Pool
Case," issued earlier today by Gardere Wynne Sewell LLP, the symbol
"(NASDAQ: DAVE)" in the first paragraph should not have been
included as originally issued. The first paragraph should read "In
a case closely watched by the restaurant and hospitality industry,
Dallas-based Dave & Buster's, Inc. has won a California
appellate court ruling affirming the restaurant's policy requiring
waitstaff to contribute a portion of their tips to a pool to be
shared with bartenders." Additionally, a boilerplate for Dave &
Buster's has been added. Complete corrected text follows.
Dave & Buster's Wins California Tip Pool Case
DALLAS, TX -- March 5, 2009 -- In a case closely watched by the
restaurant and hospitality industry, Dallas-based Dave &
Buster's, Inc. has won a California appellate court ruling
affirming the restaurant's policy requiring waitstaff to contribute
a portion of their tips to a pool to be shared with bartenders.
The ruling this week, in the Court of Appeal of California,
Second Appellate District, Division Eight, has turned back efforts
to place strict limits on participation in the traditional practice
of mandatory tip pools. Celeste Yeager, a labor and employment
partner in the Dallas office of Gardere Wynne Sewell LLP,
represented Dave & Buster's as lead counsel in both the trial
and appellate courts.
The class action, Aaron Budrow v. Dave & Busters of
California, Inc., involved an estimated 4,000 current and former
Dave & Buster's employees in California and challenged the
restaurant chain's policy of requiring servers to contribute 1
percent of their gross sales to "tip pools," which then are shared
with bartenders. Mr. Budrow, a former cocktail server, and the
others claimed the policy violated the state's business and
professions code, but lost the case in the trial court.
The appellate decision upholds the lower court ruling.
Specifically, the court found no requirement in California law that
money from tip pools should be shared among those employees who
provide "direct" table service only, as Mr. Budrow and the others
claimed.
"The court called this whole notion of direct versus indirect
service an 'artificial controversy' and it's absolutely correct in
that regard," says Ms. Yeager. "The court specifically noted that
the California Labor Code does not make a distinction between the
duties performed by employees, nor does it contain a requirement
that tip pools are limited to those employees providing direct
table service."
The California Restaurant Association and the California Hotel
& Lodging Association filed an amicus curiae brief in support
of Dave & Buster's.
"Although the use of tip pools is a longstanding practice in the
hospitality industry, and has benefited countless workers, it is a
practice that has received an unfair amount of scrutiny," adds Ms.
Yeager. "It is a relief to all involved to finally have a ruling
that spells out what constitutes a legal tip pool in California and
that it is the employer's prerogative to determine which
non-management employees should participate."
Celebrating over 26 years of operations, Dave & Buster's was
founded in 1982 and is one of the country's premier
entertainment/dining concepts with 52 locations throughout the
United States and in Canada. More information on the Company is
available at www.daveandbusters.com.
Gardere Wynne Sewell LLP, an AmLaw 200 firm celebrating 100
years in 2009 and one of the Southwest's largest full-service law
firms, has offices in Austin, Dallas, Houston and Mexico City.
Gardere provides legal services to private and public companies and
individuals in areas of energy, hospitality, litigation, corporate,
tax, environmental, labor and employment, intellectual property and
financial services.
Gardere Wynne Sewell LLP 214.999.3000 214.999.4667 fax
www.gardere.com Contact: Lisa Whitley Coleman 214.999.4548 Email
Contact
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