Pedigo v. Austin Rumba, Inc.

**Restaurant Workers Win Wage Theft Case Against Austin Employer** Restaurant workers sued Alligator Grill in Austin, Texas, claiming their employer violated federal wage and hour laws. The workers alleged the restaurant failed to pay proper overtime wages, illegally deducted money from paychecks for uniforms, and improperly handled tip credits (a system that allows employers to pay tipped workers less than minimum wage if tips make up the difference). The federal court sided with the workers on all major claims. The judge ruled that Alligator Grill violated the Fair Labor Standards Act by not paying correct overtime rates, making illegal uniform deductions from worker paychecks, and misusing tip credit rules. The court granted partial summary judgment, meaning these violations were so clear that no trial was needed to prove them. However, the exact amount of money owed to workers will be determined later. This case matters because it shows workers can successfully challenge common workplace violations. Restaurant employees often face these exact problems—unpaid overtime, illegal deductions, and tip credit abuse. The ruling demonstrates that federal law protects workers from these practices, and employers who violate wage laws can be held accountable in court.