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Case 1:24-cv-00174-TWT Document 1 Filed 01/12/24 Page 1 of 28

IN THE UNITED STATES DISTRICT COURT


FOR THE NORTHERN DISTRICT OF GEORGIA
ATLANTA DIVISION

MIA GLESSING, Individually and on


behalf of those similarly situated,

Plaintiff, CIVIL ACTION FILE NO.

v.

TATTLE TAIL, INC. d/b/a “Tattletale


Lounge, DENIS KAUFMAN, and
RICHARD R. SCHRONCE,

Defendants.

PLAINTIFF’S COLLECTIVE ACTION COMPLAINT

Plaintiff MIA GLESSING (“GLESSING”), Individually and on behalf of

those similarly situated, brings this Collective Action Complaint against

Defendants Tattle Tail, Inc. d/b/a “Tattletale Lounge” or “the Tattle Tale,” Denis

Kaufman, and Richard Schronce (collectively “Defendants”) as follows:

INTRODUCTION

1. Plaintiff and the collective she represents are former or current

waitresses of TATTLE TAIL, INC. d/b/a Tattle Tale Lounge or “the Tattle Tale,”

DENIS KAUFMAN (“Kaufman”), and RICHARD SCHRONCE (“SCHRONCE”).

2. Defendants herein, TATTLE TAIL, INC, KAUFMAN, and

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SCHRONCE, own and/or operate an adult entertainment club in Atlanta, Fulton

County, Georgia known as the “Tattle Tale” or “Tattletale Lounge.”

3. DENIS KAUFMAN (“Kaufman”) is the owner, CEO, and CFO of

Tattle Tail, Inc and the owner of the Tattle Tale.

4. RICHARD SCHRONCE (“Schronce”) is and was at all times relevant

hereto the general manager of the Tattle Tale.

5. Defendants herein failed to pay Plaintiff and other similarly situated

waitresses the minimum wage and overtime wage for all hours worked in violation

of 29 U.S.C. §§ 206 and 207 of the Fair Labor Standards Act, 29 U.S.C. § 201 et.

seq. (“FLSA”).

6. Defendants also required Plaintiff and similarly situated waitresses to

make certain payments to Tattle Tale employees and others which caused Plaintiffs’

(and those similarly situated) wages to drop below the minimum wage and

applicable overtime wage, thereby constituting illegal deductions under the FLSA;

these unlawful deductions were an illegal retention of earned tips under the FLSA.

7. Defendants required Plaintiff and those similarly situated to contribute

to an unlawful tip pool which caused Plaintiff’s wages, and the wages of the

collective, to drop below the minimum wage. Defendants took a tip credit on

waitresses hourly wages and paid Plaintiff and the collective the tipped wage without

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establishing a legal tip pool, dropping Plaintiff and the collective below the

minimum wage for all hours worked.

8. As a result of Defendants’ violation of the FLSA, Plaintiff and the

similarly situated waitresses she represents seek all unpaid minimum and overtime

wages, recovery of unlawful deductions, liquidated damages, interest, and attorneys’

fees and costs pursuant to 29 U.S.C. § 216.

JURISDICTION AND VENUE

9. This Court has jurisdiction over the subject matter of this action under

28 U.S.C. § 1331 because this action arises under the FLSA, 29 U.S.C. § 201 et seq.

10. Venue is proper in this District under 28 U.S.C. § 1391(b) because all

or a substantial portion of the events forming the basis of this action occurred in this

District. Defendants’ club is located in this District, and is specifically located in

Fulton County, Georgia, and Plaintiff and the collective action members worked in

and/or are residents of this District.

PARTIES

11. Plaintiff and the other similarly situated employees were or are

employed as waitresses by Defendants at the Tattle Tale and each of them were and

are “employees” as defined by the FLSA, 29 U.S.C. § 203(e)(1).

12. Plaintiff has consented in writing to assert claims under the FLSA. As

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this case proceeds, it is likely that other individuals will sign consent forms and join

this action as opt-in Plaintiffs.

13. The collective action members are current or were former waitresses

who are/were employed by Defendants as waitresses at the Tattle Tale from three

years prior to the filing of this lawsuit through the present.

14. Tattle Tail, Inc. is a Georgia Corporation with its principal place of

business located at 2075 Piedmont Road NW, Atlanta, Fulton County, Georgia

30342. At all times mentioned herein, Tattle Tail, Inc. was an “employer” of

Plaintiffs and the collective action members within the meaning of the FLSA, 29

U.S.C. § 203(d), (g). Defendant Tattle Tail, Inc. may be served by serving its

registered agent, Denis Kaufman at 2075-B Piedmont Road, Atlanta, Fulton County,

Georgia, 30324.1

15. Defendant Denis Kaufman (“Kaufman”) is the Owner of the Tattle Tale

and Owner, CEO, and CFO of Tattle Tail, Inc. He is a resident of Pompano Beach,

Florida. Kaufman acted directly or indirectly on behalf of Tattle Tail, Inc. with

respect to Plaintiff and the collective action members’ compensation and other terms

and conditions of employment and, at all times mentioned herein was an “employer”

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Denis Kaufman resides in Pompano Beach, Florida. Tattle Tale, Inc. may also be
served through Denis Kaufman at 3270 Lakeview Drive, Pompano Beach, Florida
33062.

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or joint employer of Plaintiff and the collective action members within the meaning

of the FLSA. Defendant Kaufman may be served at 3270 Lakeview Drive, Pompano

Beach, Florida 33062 or wherever he may be found.

16. Defendant Richard Schronce is the General Manager of the Tattle Tale

and, upon information and belief, a resident of Dekalb County, Georgia. Schronce

acted directly or indirectly on behalf of Tattle Tail, Inc. with respect to Plaintiff and

the collective action members’ compensation and other terms and conditions of

employment and, at all times mentioned herein was an “employer” or joint employer

of Plaintiff and the collective action members within the meaning of the FLSA. Upon

information and belief, Defendant Schronce may be served at 1132 Gail Drive, NE,

Brookhaven, Georgia 30319 or wherever he may be found.

17. Plaintiff Mia Glessing is a resident of Cherokee County, Georgia and

was employed by Defendants at the Tattle Tale from, upon information and belief,

March of 2021 through February 4, 2023. Glessing brings this action individually

and on behalf of the collective action members.

ENTERPRISE COVERAGE

18. At all times material hereto, Tattle Tail. Inc. had an annual gross volume of

sales made or business done of not less than $500,000 (exclusive of excise

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taxes at the retail level that are separately stated) within the meaning of 29

U.S.C. § 203(s)(1)(A).

19. At all times material hereto, two or more employees of Tattle Tail, Inc. used

or handled the following items (among others) that moved in interstate

commerce that are necessary for performing its commercial purpose: cash,

credit card machines, food, liquor, spirits, computers, office furniture, office

technology, beer, and glassware.

20. At all times material hereto, Tattle Tail, Inc. had two or more "employees

handling, selling or otherwise working on goods or materials that have been

moved in or produced for commerce by any person" within the meaning of 29

U.S.C. § 203(s)(1)(A), including multiple employees regularly selling

alcoholic beverages produced and shipped from outside Georgia.

21. At all times material hereto, Tattle Tail, Inc. was an "enterprise engaged in

commerce or in the production of goods for commerce" within the meaning

of FLSA § 6(a), 29 U.S.C. § 206 (a).

22. At all times material hereto, Tattle Tail, Inc. had an annual gross volume of

sales made or business done of not less than $500,000.00 (exclusive of excise

taxes at the retail level that are separately stated) within the meaning of 29

U.S.C. § 203(s)(1)(A).

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EMPLOYMENT RELATIONSHIP

23. At all times relevant hereto, Tattle Tale, Inc. and Kaufman owned and

operated a night club under the trade name "Tattle Tale" located at 2075

Piedmont Rd. NW Atlanta, Georgia

24. At all times relevant hereto, the Tattle Tale featured entertainment in the form

of nude or semi-nude female dancing.

25. As waitress at the Tattle Tale, Plaintiff Glessing and the collective she

represents was/were responsible for taking orders from customers and serving

cocktails to customers.

26. At all times relevant hereto, Defendants shared control of their employees,

including Plaintiff and the collective.

27. At all times relevant hereto, Plaintiff and the collective have been under the

direct or indirect control of all Defendants with respect to their duties at the

Tattle Tale.

28. At all times relevant hereto, Defendants (and others whose names and

identities may be discovered during discovery of this action) have exercised

joint control over Plaintiff and the collective she represents, including

significant decisions affecting the employment and compensation of Plaintiff

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and the collective action members, including the decisions to require Plaintiff

and the collective to participate in an unlawful tip pool, and to pay Plaintiff

and the collective less than the minimum wage as required by the FLSA, and

seize their tips in violation of the TIPA and the FLSA.

29. At all times relevant hereto, Defendants acted directly or indirectly in the

interest of each other with respect to Plaintiff and the collective.

30. At all times relevant hereto, Tattle Tale, Inc., was an "employer" of Plaintiff

Glessing and the similarly situated collective within the meaning of FLSA §

3(d), 29 U.S.C. § 203(d).

31. At all times relevant hereto, Plaintiff Glessing and the collective was/were an

"employee" of Tattle Tale, Inc. within the meaning of FLSA § 3(e)(1), 29

U.S.C. § 203(e)(1).

32. At all times relevant hereto, Kaufman was an "employer" of Plaintiff Glessing

and the collective within the meaning of FLSA § 3(d), 29 U.S.C. § 203(d).

33. At all times relevant hereto, Plaintiff Glessing and the collective was/were an

"employee[s]" of Kaufman within the meaning of FLSA § 3(e)(1), 29 U.S.C.

§ 203(e)(1).

34. At all times relevant hereto, Schronce was an "employer" of Plaintiff Glessing

and the collective within the meaning of FLSA § 3(d), 29 U.S.C. § 203(d).

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35. At all times relevant hereto, Plaintiff Glessing and the collective was/were an

"employee" (or employees) of Schronce within the meaning of FLSA §

3(e)(1), 29 U.S.C. § 203(e)(1).

36. At all times relevant hereto, Mr. Kaufman was a corporate officer of Tattle

Tale, Inc..

37. At all times relevant hereto, Mr. Kaufman was the owner of Tattle Tale, Inc.

38. At all times relevant hereto, Kaufman was involved in the day-to-day

operations of the Tattle Tale and Tattle Tale, Inc.

39. At all times relevant hereto, Mr. Schronce was involved in the day-to-day

operations of the Tattle Tale and Tattle Tale, Inc.

40. At all times relevant hereto, Defendants had the power to hire and fire

waitresses at the Tattle Tale.

41. At all times relevant hereto, Kaufman held himself out publicly as the owner

of the Tattle Tale.

42. At all times relevant hereto, Schronce held himself out as the general manager

of Tattle Tale.

43. At all times relevant hereto, Tattle Tale, Inc., and Kaufman exercised

managerial authority with respect to Plaintiff and the members of the

collective.

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44. At all times relevant hereto, Schronce exercised managerial authority with

respect to Plaintiffs and the members of the collective.

45. At all times relevant hereto, Mr. Kaufman scheduled Plaintiffs' working hours

or supervised the scheduling of Plaintiffs' working hours.

46. At all times relevant hereto, Schronce scheduled Plaintiffs' working hours or

supervised the scheduling of Plaintiffs' working hours.

47. At all times relevant hereto, Kaufman exercised managerial authority over the

work rules at Tattle Tale.

48. At all times relevant hereto, Schronce exercised managerial authority over the

work rules at Tattle Tale.

49. At all times relevant hereto, Tattle Tale, Inc., and Kaufman exercised

managerial authority over Plaintiffs' compensation, and the compensation of

those similarly situated.

50. At all times relevant hereto, Schronce exercised managerial authority over

Plaintiffs' compensation, and the compensation of those similarly situated.

ADDITIONAL FACTUAL ALLEGATIONS

51. Upon information and belief, Plaintiff Mia Glessing began her

employment with the Defendants in approximately March of 2021. Plaintiff and the

collective were employed by Defendants as waitresses at the Tattle Tale during the

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past three (3) years. Defendants own, operate, and/or manage the Tattle Tale in

Atlanta.

52. Customers at Tattle Tale regularly leave discretionary gratuities (“tips”)

for the benefit of Plaintiff and collective; the tips left by customers belong

exclusively to the plaintiffs to whom tips are given.

53. Upon information and belief, prior to approximately July 1, 2021, and

because Plaintiff and the collective regularly received tips from Defendants’

customers, Defendants classified Plaintiff and the collective as “tipped employees”

and took a “tip credit” against Defendant’s obligations to pay Plaintiff and the

collective the required $7.25 per hour minimum wage required under the FLSA.

54. Prior to approximately July 1, 2021, because of their attempts to take

advantage of the FLSA’s tip credit regulations, Defendants instead paid waitresses

$2.13 per hour for the hours worked.

55. At all times relevant to this complaint, Defendants required each

waitress (including Plaintiff and the collective) to contribute, upon information and

belief, between fifteen percent (15%) to thirty-percent (30%) of their earnings to an

illegal tip pool.

56. At all times relevant to this Complaint, the tip-pool was divided

amongst employees who are not customarily or regularly tipped and managers at the

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Tattle Tale. Managers and owners are not tipped employees and Plaintiff and the

collective cannot be required to give a percentage of their tips to them.

57. Because a portion of the tip-pool was shared with

employers/management and/or other others who are not regularly or customarily

tipped, the tip pool is invalid under the FLSA.

58. While Defendant can require Plaintiff and the collective to give a

portion of their tips to other tipped employees as part of a valid tip-pooling

arrangement, Defendants cannot require Plaintiff and the collective to give any

portion of their tips to non-tipped employees or managers, and Defendants cannot

retain the tips. The FLSA provides that an employer may not keep tips received by

its employees for any purposes, regardless of whether the employer takes a tip credits

against its minimum wage and overtime obligations.

59. To the extent Defendants were using the tip-pool as a tip-credit against

their minimum wage and overtime obligations prior to approximately July 1, 2021,

Defendants are not entitled to tip credit for the difference between the “tipped wage”

and the minimum wage of $7.25 per hour.

58. Where Plaintiff and the collective were required to contribute to a tip

pool that includes employees who do not regularly and customarily receive tips, and

a tip pool which included management participation, the Plaintiff and the collective

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prior to approximately July 1, 2021 are owed $7.25 per hour and owed

reimbursement of the amount of tips which were improperly taken by the Tattle Tale.

59. At all times relevant to Plaintiff’s Complaint, where Plaintiff and the

collective were required to contribute to a tip pool that includes employees who do

not regularly and customarily receive tips, and a tip pool which included

management participation, the Plaintiff and the collective are entitled to

reimbursement of all tips which were retained by Defendants.

60. At all times relevant to this Complaint, Plaintiff worked approximately

three to four night shifts per week.

61. Plaintiff and the collective action members who worked nights began

each night shift by approximately 9:00pm2 and remained at work until checkout was

completed at or after approximately 3:30 am.

62. Defendants did not pay the waitresses, including the Plaintiff and the

collective action members, for all time spent on the job.

63. After the club closed at 3:00 am on each night shift, Defendants

required Plaintiff and the collective waitresses to go through a check-out process at

the end of each shift, during which the waitresses is required to make certain

payments club management.

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Some night shifts began at 7:00 pm.

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64. Defendants knew that waitresses, including the Collective Action

Plaintiffs and collective action members, were not being compensated for the time

incurred on the job during the club’s business hours or after the club closed each

night.

65. Each work week in which or the Plaintiff or collective was required to

work uncompensated and “off the clock” (including after the club closed), the

waitress’s wage dropped below the minimum wage for all hours worked.

66. Waitresses were routinely tipped by customers using “T-bucks.” At all

times relevant to this action, Defendants required each waitresses including Plaintiff

and the collective, to pay, upon information and belief, a ten (10%) fee to convert

customer tips paid by credit card (known as T-bucks) into cash.

67. The “t-bucks to cash” fee was retained by the Defendants.

68. In each week Plaintiff or any collective member paid the required “t-

bucks to cash conversion fee,” the waitresses’ wages were dropped below the

minimum wage.

69. Payment of the “T-bucks to cash conversion fee” constitutes unlawful

deductions under the FLSA, violates the “free and clear” requirement of the FLSA

and constitutes an illegal kick back under the FLSA.

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70. The amounts paid to Tattle Tale waitresses by its customers are not

included in Tattle Tale, Inc.’s gross receipts or accounting records, are not taken into

possession by Defendants and distributed to Tattle waitresses.

71. At all times relevant to this Complaint, Plaintiff and the collective were

not exempt from the maximum hour requirements of the FLSA by reason of any

FLSA exemption.

72. At all times relevant to this Complaint, Defendants did not employ

Plaintiff or any member of the collective in a bona fide professional capacity within

the meaning of 29 USC 213 (a)(1).

73. At all times material hereto, Defendants did not employ Plaintiffs or

any member of the collective in a bona fide executive capacity within the meaning

of 29 U.S.C. 213 (a)(1).

74. At all times material hereto, Defendants did not employ Plaintiff or any

member of the collective in a bona fide administrative capacity within the meaning

of 29 U.S.C. 213(a)(1).

75. At all times material hereto, Plaintiff and/or the collective action

members did not supervise two or more employees.

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76. At all times material hereto, Defendants did not employ Plaintiff or any

member of the collective in the capacity of an “outside salesman” so as to be exempt

from the minimum and maximum hour requirements of 29 USC 213(a)(1).

77. Upon information and belief, either Defendants failed to maintain, or

Defendants maintained inaccurate records of, credit card conversion fees, time

sheets, tip-out records, tip pool contributions, tip pool records and records reflecting

actual hours worked at the Tattle Tale as to each waitress, including Plaintiff and the

collective.

78. Defendants maintain, and maintained incomplete records of time

worked by Plaintiff and the collective.

79. Defendants willfully disregard and purposefully evade record keeping

requirements of the FLSA by failing to maintain proper and complete timesheets and

payroll records for waitresses. Defendants’ failure to maintain records of the time

worked and amounts paid as fines, tips, gratuities and service charges violate the

record keeping requirements of 29 CFR Part 516

80. Defendants knew, or showed reckless disregard for the fact that their

compensation policies violated the FLSA.

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COLLECTIVE ACTION ALLEGATIONS – 29 U.S.C. § 216(b)

81. Defendants maintained a policy and practice of not compensating

waitresses for the time they spent at work.

82. Defendants maintained a policy and practice of not compensating

waitresses for all time spent at the Tattle Tale, including (but not limited to) time

spent working during the hours the club was open and during the check-out process

at the end of each shift.

83. Defendants maintained a policy and practice of requiring waitresses to

pay T-buck to cash conversion fees.

84. Prior to mid-2021, Defendants only paid waitresses $2.13 per hour, and

maintained a policy and practice of requiring waitresses to participate in an unlawful

tip pool. At all times relevant to this Complaint, the Defendants required all

waitresses to contribute to an unlawful tip pool.

85. Like Plaintiff, there are members of the putative Collective action who

are or were subject to the same FLSA violations outlined herein. These individuals

would benefit from the issuance of court-supervised notice of this lawsuit and the

opportunity to join by filing their written consent. Defendants can readily identify

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these similarly situated waitresses through their business records and produce their

contact information to Plaintiffs’ counsel.

86. The putative class includes:

All waitresses who were employed by Defendants at any time during


the three years prior to the date of filing of this lawsuit.

COUNT I
MINIMUM WAGE CLAIM (Claims for Violation of 29 U.S.C. § 206)

87. The allegations of paragraphs 1 – 86 above are incorporated herein by

reference.

88. Each Defendant is an “employer” or joint employer of Plaintiffs and all

others similarly situated within the meaning of the FLSA, 29 U.S.C. § 203(d).

89. Defendants are engaged in “commerce” and/or in the production of

“goods” for “commerce” as those terms are defined in the FLSA.

90. Tattle Tail, Inc. operates an enterprise engaged in commerce within the

meaning of the FLSA, 29 U.S.C. § 203(s)(1), because it has employees engaged in

commerce, and because its annual gross volume of sales made is more than

$500,000.

91. At all times material hereto, Plaintiff and the collective action members

were or are employees covered by the FLSA and entitled to the minimum wage

protections set forth in FLSA, 29 U.S.C. § 206; Plaintiff consents to sue in this action

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pursuant to 29 U.S.C. § 216(b) and the consent to sue executed by Plaintiff is

attached to Complaint.

92. Defendants willfully disregarded and purposefully evaded record

keeping requirements and failed to maintain proper, complete, and accurate

timesheets and work records of Plaintiff and the collective; as a result of Defendants’

failure to make, keep and maintain records under the FLSA, such records do not

exist or insufficient to determine wages, hours, tip-pool contributions, fees, fines,

and other conditions of employment.

93. Defendants failed to pay Plaintiff and all others similarly situated the

minimum wage for all hours worked in violation of 29 U.S.C. § 206.

94. At all times material hereto, Defendants required Plaintiff to pay

kickbacks to Defendants and their managers, as described herein.

95. Upon information and belief, prior to July 1, 2021, Plaintiff and the

collective earned $2.13 per hour working for defendants.

96. Because Defendants cannot claim the tip credit against their minimum

wage obligations, Defendants must pay Plaintiff and the collective the full minimum

wage ($7.25 per hour) for all hours worked.

97. At all times relevant hereto, Defendants knowingly and willfully

maintained an illegal tip-pool, allowing managers and non-tipped employees to

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participate.

98. Defendants must pay Plaintiff and the collective all retained tips.

99. Defendants willful violations of the U.S. Department of Labor’s

regulations governing tip-pools i.e. (1) allowing employees who are not traditionally

or customarily tipped to participate, (2) allowing managers to participate, (3) failing

to distribute all of the tip pool to customarily tipped employees (and thus illegally

retaining a portion of the tip pool for management), constitutes a violation of 29

U.S.C. 206.

100. Defendants' requirement that plaintiff and the similarly situated

collective pay “t-bucks to cash conversion” fees to Defendants and their agents and

employees violated the "free and clear" requirement of 29 CFR 531.35.

101. Defendants’ willful requirement that Plaintiff and other similarly

situated waitresses pay a “T-bucks to cash conversion” charge constitutes an illegal

kickback; Plaintiff and the collective are entitled to reimbursement of all kickbacks

paid to Defendants and their agents and employees, in addition to all other unpaid

wages.

102. Defendants’ willfully required Plaintiff and other similarly situated

waitresses to perform “off the clock” work at the end of each shift, in violation of 29

U.S.C. § 206.

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103. Defendants owe Plaintiff and those similarly situated back wages in an

amount to be determined at trial for all unpaid but otherwise compensable time

pursuant to 29 U.S.C. § 206 and § 216.

104. Plaintiff and the collective are entitled to liquidated damages in an

amount equal to their unpaid wages, retained tips, and kickbacks paid in accordance

with FLSA § 16(b), 29 U.S.C. § 216(b).

105. As a result of their underpayment of minimum wages as alleged herein,

Defendants are jointly and severally liable to Plaintiff and the collective action

members for their litigation costs, including their reasonable attorney's fees in

accordance with FLSA § 16(b); 29 U.S.C. § 216(b).

106. The federal tip credit regulations expressly prohibit managers,

employers, owners, and non-tipped employees from receiving any amount of tip

received by the tipped employees.

107. The federal tip credit regulations expressly prohibit employers from

keeping tips received by their employees regardless of whether the employer takes

a tip credit under the FLSA.

108. Defendants either consulted these regulations and failed to comply with

them----which demonstrates an intentional violation of the FLSA ---or failed to

consult these regulations which shows a reckless disregard of the rights of Plaintiff

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and the collective under the FLSA.

109. Based upon the conduct alleged herein, Defendants knowingly,

intentionally and willfully violated the FLSA by knowingly not paying Plaintiffs and

the collective action members the minimum wage under the FLSA and illegally

retaining tips.

110. The federal regulations expressly prohibits an employer taking a “kick

back” from the employee for the employer’s benefit. Defendants either consulted

these regulations when charging a “t-bucks to cash” conversion fee---which

demonstrates an intentional violation of the FLSA---or failed to consult these

regulations which shows a reckless disregard of the rights of the Plaintiff and the

collective under the FLSA.

111. Throughout the relevant period of this lawsuit, there is no evidence that

Defendants’ conduct that gave rise to this action was in good faith and based on

reasonable grounds. In fact, at all times relevant to this action, Defendants willfully

violated the FLSA knowing that their wage scheme, compensation policies, kick-

back schemes and required tip-pool contributions were illegal.

112. Because Defendants intentionally and willfully violated the FLSA,

Plaintiff and the collective are entitled to (1) their unpaid wages, 2) their retained

tips, and (3) liquidated damages for a period of three years prior to the filing of this

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Complaint under 29 U.S.C. 255.

113. Due to Defendants’ FLSA violations, Plaintiff and the collective action

members are entitled to recover from Defendants, reasonable attorneys’ fees and

costs of the action, including interest, pursuant to 29 U.S.C. § 216(b).

COUNT II
UNLAWFUL TAKING OF TIPS (Violation of 29 U.S.C. § 203)

114. The allegations of paragraphs 1 – 113 above are incorporated by

reference.

115. Each Defendant is an “employer” or joint employer of Plaintiff and

each collective action member within the meaning of the FLSA, 29 U.S.C. § 203(d).

116. Defendants engaged in “commerce” and/or in the production of

“goods” for “commerce” as those terms are defined in the FLSA.

117. Defendants operate an enterprise engaged in commerce within the

meaning of the FLSA because they have employees engaged in commerce and

because its annual gross revenue of sales made is more than $500,000.00.

118. Under TIPA:

[a]n employer may not keep tips received by its employees for any purpose
including allowing managers or supervisors to keep any portion of employees
tips, regardless of whether or not it takes a tip credit.

29 U.S.C. § 203.

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119. Defendants kept a portion of tips paid to Plaintiff and the collective

action members by Defendants’ customers in the form of requiring waitresses to

participate in an illegal tip pool (as set forth above) and fees to the club and

management, in the form of a “T-bucks to cash” conversion charge, in violation of

TIPA.

120. As a result of Defendants’ willful violation of TIPA, Plaintiff and the

collective are entitled to recover, under the FLSA and TIPA, all tips kept by the

employer, any tip credit claimed by Defendants, an equal amount in liquidated

damages and attorney’s fees.

PRAYER FOR RELIEF

WHEREFORE, Plaintiff, Individually and on behalf of the collective she

represents, respectfully prays that this Court grant relief as follows:

a. Conditionally Certify this as a collective action and issue notice to

collective action members informing them of their right to join this

action;

b. Rule that Defendants’ actions, policies, and practices violated, and

continue to violate, the rights of the Named Plaintiff and others

similarly situated under the FLSA;

c. Rule that Defendants’ violations of the FLSA were willful;

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d. As to Count I award Plaintiff and each collective action member who

joins this action judgment for wages at the minimum rate, including the

recovery of all unpaid wages, unlawfully retained tips, as well as

liquidated damages in an amount equal to unpaid wages, liquidated

damages in an equal amount of the unlawfully retained tips, interest and

attorneys’ fees as provided for under the FLSA, against the Defendants

jointly and severally;

e. That Plaintiff and each collective action member who joins this action

be awarded the recovery of all payments reducing the wages below the

minimum wage, including but not limited to the “kickbacks” charged

by Defendants in violation of the FLSA and an additional like amount

in liquidated damages, as well as attorney’s fees against the Defendants

jointly and severally;

f. As to Count II award Plaintiff and any collective member who joins this

lawsuit judgment for the recovery of all tips kept by the employers, the

amount of any tip credit claimed by Defendants, an equal amount in

liquidated damages and reasonable attorney’s fees under the FLSA and

TIPA against the Defendants jointly and severally;

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Case 1:24-cv-00174-TWT Document 1 Filed 01/12/24 Page 26 of 28

g. Award Plaintiff and others similarly situated their reasonable attorney’s

fees and costs of this action, including expert fees;

h. Grant Plaintiffs and the collective action members who join this action

a jury trial on all issues so triable; and

i. Award Plaintiff such other and further relief as the Court may deem just

and proper.

Respectfully submitted this 12th day of January, 2024.

FLYNN LAW FIRM, LLC

/s/ Jonah A. Flynn


Jonah A. Flynn
Georgia Bar No. 266555
Counsel for Plaintiffs
4200 Northside Parkway NW
Building One, Suite 100
Atlanta, GA 30327
Phone/FAX: 404-835-9660
e-mail: jflynn@flynnfirm.com

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Case 1:24-cv-00174-TWT Document 1 Filed 01/12/24 Page 27 of 28

JURY DEMAND

Pursuant to F.R.C.P 38, Demand is hereby made for trial by jury on

all issues raised by these pleadings.

/s/ Jonah A. Flynn

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Case 1:24-cv-00174-TWT Document 1 Filed 01/12/24 Page 28 of 28

CERTIFICATE OF COMPLIANCE

The undersigned hereby certifies that the foregoing pleading complies with

the font and point selections approved by the Court in Local Rule 5.1B. This

pleading has been prepared in Times New Roman font, 14 point.

By: /s/ Jonah A. Flynn

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