Court Rules that Michigan Food Service Workers are Entitled to Full Minimum Wage

The Chief Judge of the Wayne Circuit sided with Plaintiffs and the BW legal team, ruling that a certified class of over 2,000 Dominos Delivery Drivers are owed the full Michigan minimum wage, regardless of the amount of tips received. The court ruled that Defendants could not qualify to for an exception to the minimum wage. Employers must show the they meet the specific requirements under Michigan law in order to use a “tip-credit”.  

In the STA Management Case, a Dominos Pizza franchisee failed to obtain signed declaration from each employee prior to each pay day, as required to qualify for a tip credit.  As a result, every class member was entitled to receive the full minimum wage, according to a ruling from the Wayne County Circuit Court. 

Under Michigan law, employers are required to pay a full minimum wage (currently $13.73/hr) regardless of the amount of tips earned, unless one of a handful of narrow exceptions apply. If a restaurant tries to use a tip credit, but doesn’t follow the rules, they are required to pay the full minimum wage. That’s the law at work!

How do I know if I should be paid the minimum wage?

• Are you paid a cash wage of at least $13.73 for each hour worked (not counting tips or other customer gifts)?
• Does your employer obtain a signed statement from you of your tips before the end of each pay period?
• Do you get to take home all of your tips – without any requirement to share with managers, dishwashers, or cooks?
• Do you get to keep all customer tips for online orders? 
• Do you get to take home all of your tips without any deduction for credit card fees, more than the actual cost of the fees?
• Do you get paid a full minimum wage for all time spent on non-tipped work (such as pre-shift or post shift duties)?

If you answered no to any of the above, you may be entitled to additional wages, such as the full Michigan minimum wage of $13.73/hr. 

If you’re not sure where or when to report wage theft, start by contacting an employment attorney with wage theft enforcement experience. Michigan employers who violate the law are liable to pay employees their full minimum wage of $13.73/hour, and potential penalties, liquidated damages and attorneys’ fees.