Ray v. 1650 Broadway Associates Inc.
Case Details
- Nature of Suit — the legal category of the dispute
- Labor: Fair Standards
- Status — whether other courts must follow this ruling
- Unknown
- Procedural Posture — the stage the case had reached
- consent decree
- State
- New York
- Circuit
- Second Circuit
Related Laws
No specific laws identified for this ruling.
Claim Types
Outcome
District court granted preliminary approval of a class and collective action settlement under the Fair Labor Standards Act and New York Labor Law in a wage-and-hour dispute involving improper tip credits, minimum wage failures, and inaccurate wage statements at Ellen's Stardust Diner.
What This Ruling Means
Ray v. 1650 Broadway Associates Inc.
What Happened
Workers at Ellen's Stardust Diner filed a lawsuit claiming the restaurant improperly used tip credits to pay below minimum wage, failed to pay workers the full minimum wage they were owed, and gave inaccurate wage statements. These allegations involved multiple employees over time.
What the Court Decided
The federal district court approved a settlement agreement covering all affected workers. Rather than going to trial, the restaurant and workers agreed to resolve the dispute. The court confirmed this settlement was fair and could move forward as a class action, meaning all similarly affected employees could benefit from the agreement.
Why This Matters for Workers
This case reinforces that restaurants cannot simply assume tips will cover minimum wage requirements. It shows courts take wage-and-hour violations seriously, even when they involve tips. Workers who suspect their employer is underpaying them or miscalculating wages—particularly in restaurants—may have legal protections and options for recovering owed wages through class action settlements like this one.
This summary was generated to explain the ruling in plain English and is not legal advice.
Similar Rulings
Browse Related
Facing something similar at work?
Court rulings like this one are useful, but every situation is different. Take 3 minutes to see which laws may protect you — it's free, private, and no account is required to start.
This ruling information is sourced from public court records via CourtListener.com. Case outcomes, claim types, and summaries are extracted using AI analysis and may be incomplete or inaccurate. It is provided for informational and educational purposes only and does not constitute legal advice.
See something wrong, or named in this ruling and want it corrected or redacted? Request a correction.