Rarely received tips for their service

Reference no: EM131061905

Fair Labor Standards Act. Misty Cumbie worked as a waitress at Vita Café in Portland, Oregon. The café was owned and operated by Woody Woo, Inc. Woody Woo paid its servers an hourly wage that was higher than the state's minimum wage, but the servers were required to contribute their tips into a "tip pool." Approximately one-third of the tip-pool funds went to the servers, and the rest was distributed to the kitchen staff that otherwise rarely received tips for their service. Cumbie sued Woody Woo, alleging that the tip-pooling arrangement violated the minimum wage provisions of the Fair Labor Standards Act (FLSA). The district court dismissed the suit for failure to state a claim. Cumbie appealed. Did Woody Woo's tip-pooling policy violate the FLSA rights of the servers? Explain your answer.

Reference no: EM131061905

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