Misty Cumbie worked as a waitress at the Vita Caf in Portland, Oregon. The caf was owned


Misty Cumbie worked as a waitress at the Vita Café in Portland, Oregon. The café was owned and operated by Woody Woo, Inc. Woody Woo paid its servers an hourly wage that was higher than the state’s minimum wage, but the servers were required to contribute their tips to a “tip pool.” Approximately one- third of the tip- pool funds went to the servers, and the rest was distributed to kitchen staff members, who otherwise rarely received tips for their services. Did this tip- pooling arrangement violate the minimum wage provisions of the Fair Labor Standards Act? Explain.

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Business Law Text and Cases

ISBN: 978-1285185248

13th edition

Authors: Kenneth Clarkson, Roger LeRoy Miller, Frank Cross

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