The lawsuit centered around the so-called “80/20 rule,” which allows employers to claim a tip credit only if workers spend less than 20% of their time on non-tipped duties. While the U.S. Department of Labor had codified this rule in 2021, it was later struck down by the Fifth Circuit Court of Appeals in August.
Judge Brody emphasized that after six years of litigation and negotiation, nullifying the agreement would harm the thousands of workers poised to benefit from the settlement, particularly given the recent legal uncertainty surrounding the 80/20 rule. She noted that reversing the agreement could result in “a clearly defined and serious injury” to the parties involved.
The case, Belt et al. v. P.F. Chang’s China Bistro Inc., is ongoing in the U.S. District Court for the Eastern District of Pennsylvania.
Representatives for the parties involved did not immediately respond to requests for comment following the ruling.
Parties Involved:
- Charlotte Alexander is represented by Michael J. Quirk of Motley Rice LLC and Lauren E. Bateman of Public Citizen Litigation Group.
- The workers are represented by Reena I. Desai, Caitlin L. Opperman, and Daniel S. Brome of Nichols Kaster PLLP, and Patricia A. Barasch of Schall & Barasch LLC.
- P.F. Chang’s is represented by Paul DeCamp, Kathleen A. Barrett, and Jill K. Bigler of Epstein Becker Green, and Michael W. McTigue Jr., Meredith C. Slawe, and Colm P. McInerney of Skadden Arps Slate Meagher & Flom LLP.