In a significant legal development, the Stoneacre family of restaurants and its owners are embroiled in serious labor law violation allegations. The lawsuit contends that they unlawfully appropriated employee tips and misclassified positions, thereby exempting certain workers from overtime pay requirements.

The Case: Martin V. Walsh v. Kale Stems, LLC d/b/a Stoneacre et al.

The Court: U.S. District Court, District of Rhode Island

The Case No.: 1:22-cv-00289

The Plaintiff: Walsh v. Stoneacre

The complaint was filed by U.S. Labor Secretary Marty Walsh and lists four counts of Fair Labor Standards Act violations against Stoneacre Hospitality co-owners Christopher Bender and David Crowell and their associated LLCs (associated with Stoneacre Brasserie, Stoneacre Garden, and Stoneacre Tapas (now closed)). According to the complaint, Bender and Crowell participated in the employee tip pool and allowed other managers and supervisors to participate. Doing so violates the Fair Labor Standards Act of 1938 (FLSA), which prohibits employees in positions that don't typically receive tips from participating in a tip pool. According to the complaint, the alleged participation in the tip pool also led to minimum wage compensation violations.

The Defendant: Walsh v. Stoneacre

The defendants in the case are the Stoneacre family of restaurants and its owners. The Newport area entrepreneurs started business during the Covid pandemic. In addition to the tip pool and minimum wage allegations, the defendants face allegations that they failed to pay proper overtime pay rates, misclassified employees to leave them exempt from overtime pay protections provided by labor law, and failed to maintain and keep accurate records of their employees' hours. According to the complaint, the defendants scheduled their employees' shifts at three locations. The employees also received payment through three different entities, and the defendants did not combine the hours worked at the three locations, so employees regularly worked overtime hours without receiving any overtime pay.

The Case: Walsh v. Stoneacre

The plaintiff seeks payment for the withheld tips and back wages due to minimum wage violations and damages for current and former employees affected by the alleged violations.

If you have questions about filing a California overtime lawsuit, please contact Blumenthal Nordrehaug Bhowmik DeBlouw LLP. Experienced employment law attorneys are ready to assist you in various law firm offices in San Diego, San Francisco, Sacramento, Los Angeles, Riverside, and Chicago.