Attorney Adam Harrison wrote in a LinkedIn post that Culinary Creative Group “assures customers that its ‘service charge’ is distributed ‘equitably among staff’ but then pays a huge portion to MANAGEMENT.”
A Colorado waitress has filed a lawsuit against her former employer, claiming that management from the Culinary Creative Group Inc. cut an unfair amount of money her from tips.
According to The Independent, the lawsuit was filed on behalf of server Marianna White.
Culinary Creative Group, or “CCG,” is the owner of a prominent string of Denver-area restaurants, including Tap and Burger, Forget Me Not, Senor Bear, Mister Oso, and Bear Dough.
White, who used to work at the CCG-owned Kumoya restaurant, said that customers would typically be charged an automatic “service fee.” However, White claims that management would take 30% of every service fee charged. This money went directly to management was not redistributed among servers or kitchen staff.
Adam Harrison, an attorney representing White, wrote in a LinkedIn post that Culinary Creative Group “assures customers that its ‘service charge’ is distributed ‘equitably among staff’ but then pays a huge portion to MANAGEMENT.”
However, the company’s CEO now insists that “service fees” are fundamentally different from “tips.”
“Under Colorado law, service fees may be distributed to any employees, including management, at the restaurant’s discretion,” CEO Juan Padro told CBS-Denver. “All guest checks at CCG establishments clearly disclose that the checks include a 20 percent charge, which is labeled a ‘service fee.’”
“Our guest checks also include an entirely separate line for guests to leave ‘tips,’” he said.
The lawsuit, though, claims that CCG intentionally misrepresented the purpose of its service charge. It also alleges that the company regularly deprived employees of mandatory rest breaks, for which White is requesting damages for unpaid wages and other compensation.
Hailey Jamieson, a former worker at other CCG-owned restaurants, told CBS-Denver that the company was notorious for less-than-transparent practices.
“It was like pulling teeth trying to get a break there,” she said.
Meanwhile, another former Kumoya employee indicated that other servers had raised similar concerns about the restaurant’s mandatory service fees.
“Nobody could tell us where the money was going,” said former Kumoya employee Faith Lindstrom. “Nobody would tell us why we aren’t seeing 20% of the money or of the food that we’re selling.”
CCG has released a statement denying any and all wrongdoing.
“Contrary to the false accusations made against our company, we have never misappropriated a single penny of employee tips,” CCG told CBS News in a statement. “All tips collected are distributed to front-of-the-house employees. In addition, all service fee funds collected have been appropriately distributed to our staff.”
Sources
Denver restaurant group faces lawsuit from former employees over 20% service charge misuse
Denver restaurants sued by ex-employees who allege 30% of service charge was going to management
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