Coyote Ugly Bartenders Get Bounced On Illegal Tip-Pool Claim

Law360, New York (August 9, 2013, 7:45 PM EDT) -- A nationwide class of Coyote Ugly Saloon Development Corp. bartenders on Thursday lost their Fair Labor Standards Act case as a Tennessee federal judge ruled the nightlife chain did not illegally require them to participate in a tip pool with bouncers.

U.S. District Judge Aleta A. Trauger, ruling after a two-day bench trial, disagreed with class members that the tip-pooling policy violated FLSA because security guards were statutorily ineligible to participate in the arrangement. The class argued that bouncers get wages that are equal to or...
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