Zhu v. Driscoll

**What Happened** Restaurant servers at Steak N Shake sued their employer for wage theft. The workers claimed the company violated federal wage laws by not paying them minimum wage for certain types of work during their shifts. **What the Court Decided** The court sided with the workers, ruling that Steak N Shake broke the Fair Labor Standards Act. The judge found that the company illegally failed to pay servers minimum wage when they performed tasks unrelated to serving customers (like cleaning or food prep) and when tip-related work took up more than 20% of their shift time. **Why This Matters for Workers** This ruling reinforces important protections for tipped workers. Under federal law, employers can pay servers below minimum wage only for work that directly generates tips. When servers spend significant time on non-tipping tasks or when tip-related duties exceed one-fifth of their shift, employers must pay full minimum wage for that time. This decision helps ensure restaurant workers receive proper compensation for all their work, not just the hours spent directly serving customers who might leave tips.