Topgolf Entertainment Corp. will settle a class-action lawsuit that accused the employer of giving managers incentives to pay employees below minimum wage, according to court filings this week.
The case was initially filed in Texas federal court in February 2020 by a former Topgolf server and bartender at its venue in Spring, and the terms of the settlement are unclear. Thousands of workers had opted to join the nationwide class-action lawsuit since the 2020 complaint, according to filings.
Topgolf categorically denied all allegations in its response and alleged that an LLC called Topgolf USA Spring Holdings, which is also named in the suit, was the employer of the worker filing suit and not Topgolf. A spokesperson for the Dallas-based company declined to comment on the suit.
The worker in the original complaint alleged that the golf entertainment company violated the Fair Labor Standards Act in multiple ways. The FLSA is the law that defines the 40-hour workweek, overtime and minimum wage rules at the federal level.
Like many bars and restaurants, Topgolf took advantage of a provision of the FLSA that allows employers to pay a worker below minimum wage — $2.13 per hour — if they’re receiving tips, the suit said.
The suit alleges that Topgolf didn’t tell employees they were working for tips, required them to give a portion of their tips to other workers ineligible for tips, required them to purchase specific clothes and deducted the cost from the worker’s pay and required...
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