Waffle House employee says franchise owner stiffed servers on full pay
A Knoxville woman has filed a federal class-action lawsuit against one of the nation’s largest Waffle House franchisees, saying the company failed to pay employees minimum wage and then incorrectly inflated their wages in its payroll system.
The lawsuit was filed against Rocky Top Waffles LLC on Jan. 10 by Colleen Knoski, a former server at the Cedar Bluff Road Waffle House. Russ Bryant, an attorney with the Memphis firm Jackson, Shields, Yeiser, Holt, Owen and Bryant, said Knoski is no longer employed at the restaurant.
The lawsuit asserts Rocky Top Waffle House violated workers’ rights under the Fair Labor Standards Act, improperly docking employees’ wages in a tip share agreement and then entering a higher wage in its payroll system.
“… (N)ot only did (Knoski) and similarly situated servers frequently earn far less than the FLSA required $7.25 hourly rate of pay, they were obliged to pay taxes on tips they did not receive,” the lawsuit says.
According to the Department of Labor, “An employer that claims a tip credit must ensure that the employee receives enough tips from customers, and direct (or cash) wages per workweek to equal at least the minimum wage and overtime compensation required under the FLSA.”
Rocky Top Waffles is a Waffle House franchise company registered as a Georgia corporation with its principal offices in Chattanooga. However, it operates as a subsidiary of Southern Legacy Waffles LLC, which was formed out of Delaware and operates Rocky Top Waffles LLC, Choo Choo Waffles LLC and Lookout Waffles LLC.
Southern Legacy Waffles, according to its Facebook page, is the oldest and largest Waffle House franchise in the country with 76 stores, the majority of which are in East Tennessee.
The company’s registered agent, the
Nashville office of the Corporation Service Company, declined to comment. Representatives at the Georgia office did not respond to multiple requests from Knox News for comment.
Knoski could not be reached for comment.
More on what’s alleged by the Waffle House server
The lawsuit includes the following allegations:
h The tip policy at the Waffle Houses named in the suit did not guarantee that employees’ hourly rate and credited tips equal to at least $7.25 an hour (minimum
wage).
h There were many shifts where employees earned less than $7.25 an hour, but Rocky Top Waffles did not input that minimum amount into the payroll system, meaning employees had to pay taxes on wages they did not earn.
h Rocky Top Waffles did not inform or explain to employees the type of compensation plan it used, against FLSA guidelines.
h Employees spent 20% of their work time doing nontip tasks, such as cleaning the restaurant. During that time, they were docked the same reduced rate as if they were serving customers.
h Employees were docked $3 a shift
for the cost of company food, regardless of whether they ate at the restaurant that day.
Waffle House employees across the Southeast are demanding a $25 an hour wage, 24/7 security and an end to mandatory meal deductions.
Tyler Whetstone is an investigative reporter focused on accountability journalism. Connect with Tyler by emailing him at tyler.whetstone@knoxnews.com. Follow him on X, formerly known as Twitter, @tyler_whetstone.
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