Crikey! Court Approves $1.25 MM Settlement for Outback Steakhouse Servers Represented by Nichols Kaster, PLLP

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The settlement resolves the class action filed against Outback Steakhouse in April 2010, which alleged that Outback unlawfully required servers to share their gratuities with bussers, hosts and hostesses.

Nichols Kaster, PLLP
We are very pleased with the settlement, which gives back to servers a large percentage of the gratuities that the lawsuit alleges Outback required servers to pay into the tip pool.

On August 30, 2011, the United States District Court for the District of Minnesota granted final approval of a $1.25 million settlement between OS Restaurant Services, Inc. and the approximately 1,200 servers who have worked at Outback Steakhouse restaurants in Minnesota.

The settlement resolves the class action filed against Outback Steakhouse in April 2010, which alleged that Outback unlawfully required servers to share their gratuities with bussers, hosts and hostesses in violation of the Minnesota Fair Labor Standards Act’s strict prohibitions on employer-run and mandated tip pools.

Plaintiffs’ Counsel Anna Prakash stated, “We are very pleased with the settlement, which gives back to servers a large percentage of the gratuities that the lawsuit alleges Outback required servers to pay into the tip pool.”

Plaintiffs are represented by Steven Andrew Smith, E. Michelle Drake, and Anna P. Prakash from Nichols Kaster, PLLP, which has offices in Minneapolis, Minnesota and San Francisco, California. The case is entitled Cosgrove, et al. v. OS Restaurant Services, Inc., No. 10-cv-01937 (D. Minn.).

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