8th Circ. Scraps Applebee's Tip Action Appeal

Law360, New York (April 21, 2011, 7:40 PM EDT) -- The Eighth Circuit on Thursday rejected Applebee's International Inc.'s challenge of a lower court's take on the Fair Labor Standards Act's tip credit provision in a class action over the franchise's alleged failure to pay proper minimum wage.

A three-judge panel upheld a Missouri federal court's ruling that employers cannot use a tip credit to offset minimum wage requirements for time workers spend on general preparation and maintenance duties if those duties take up more than 20 percent of an employee's workday.

The panel also shot...
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