Topgolf will settle with workers in response to a class-action lawsuit alleging the international food and entertainment company incentivized managers at its U.S. locations to pay employees less than the federal minimum wage for un-tipped labor.
First reported by The Dallas Morning News' Dom DiFurio, the case began with a lawsuit filed in Texas federal court in 2020 by two former employees at the companies' Spring, Texas location. The suit alleged the company made use of provisions in the Fair Labor Standards Act that allows restaurants and bars to pay staff $2.13, below the $7.25 national minimum wage, on account of their receiving of tips throughout the course of workday.
The suit has since been joined by thousands of Topgolf employees across the nation, with claims the company manipulated this FLSA loophole by not telling employees they were working for tips and making workers spend time doing non-tipped labor such as cleaning and sanitizing. It claims Topgolf utilizes software that would allow the company to differentiate these different tasks and increase pay to $7.25 for time spent doing non-tipped labor, but that the function was never used to allocate proper pay levels.
Topgolf has denied these accusations and will settle for an undisclosed amount with workers involved in the suit. The complaint, according to DiFurio, sought back pay for employees' non-tipped labor at $7.25 per hour.
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