Federal lawsuit: Second Lexington fine-dining restaurant accused of wage, tip theft

Taylor Six, Janet Patton
·4 min read
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A new potential class action lawsuit was filed Tuesday in federal court against exclusive downtown Lexington restaurant Jeff Ruby’s Steakhouse, alleging wage and tip theft.

A former server at the Lexington Jeff Ruby’s, Johnathan Lamb, filed suit alleging that the owners paid him and other employees below the state and federal minimum wage rates.

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The lawsuit said the defendants took a portion of the tips earned by servers and bartenders and shared the money with back-of-house employees “who did not earn the tips and who did not interact with customers.”

This case was brought on behalf of hundreds of servers and bartenders who have worked at restaurants owned by the Rubys including The Precinct and Carlo & Johnny restaurants in Cincinnati, as well as those who worked at Jeff Ruby’s Steakhouse restaurants in Cincinnati, Columbus, Louisville, Lexington, and Nashville.

The lawsuit was filed in the southern district of Ohio and will require the federal court’s approval to be reviewed as a class action.

Britney Ruby Miller, CEO of Jeff Ruby Culinary Entertainment, told the Herald-Leader the actions alleged in the lawsuit by a “disgruntled employee” are untrue and the business will defend themselves “vigorously to the fullest extent of the law.”

“Our family owned business is passionately dedicated to our employees,” Britney Ruby Miller said in a text message statement. “They are not only our greatest asset — they are family. Our purpose statement is to ‘transform the hospitality industry by improving lives through our culture of caring.’ We have always and will always stand up for justice and truth.”

Restaurateur Jeff Ruby opened his steakhouse in downtown Lexington in 2019, promising a “magical” experience for patrons.
Restaurateur Jeff Ruby opened his steakhouse in downtown Lexington in 2019, promising a “magical” experience for patrons.

In addition to allegedly violating federal and state minimum wage and overtime requirements, the lawsuit claims the restaurants participated in unlawful retention of tips under state and federal law, and unjust enrichment. They are asking that Jeff Ruby’s be found guilty of these violations and be required to pay liquidated damages and monetary penalties to the fullest extent the law requires.

What the lawsuit alleges Jeff Ruby’s Steakhouse did

The servers and bartenders were paid below the minimum wage under what the law calls a “tip credit” — but the lawsuit claims Jeff Ruby’s restaurants violated the legal requirements for this pay practice, according to lead attorney, David Garrison.

Jeff Ruby’s Steakhouse during a ribbon cutting ceremony and dry run at City Center in downtown Lexington, Ky., Friday, April 19, 2019. Jeff Ruby’s was sued in federal court in Ohio for wage and tip theft by a Lexington server.
Jeff Ruby’s Steakhouse during a ribbon cutting ceremony and dry run at City Center in downtown Lexington, Ky., Friday, April 19, 2019. Jeff Ruby’s was sued in federal court in Ohio for wage and tip theft by a Lexington server.

The lawsuit claims Jeff Ruby’s restaurants used a tip-pooling scheme to take employees’ earned tips and pay other employees, who did not interact with customers in a meaningful way, Garrison said in a news release.

According to the lawsuit, this tip-sharing method benefited Jeff Ruby’s owners by forcing tipped workers to subsidize the costs of employing the back-of-house employees.

The lawsuit also alleged that servers and bartenders at Jeff Ruby’s restaurants were required to conduct non-tip producing work at a sub-minimum hourly wage.

Jeff Ruby, center, spoke to the crowd during a ribbon cutting and dry run for the new Jeff Ruby’s Steakhouse at City Center in downtown Lexington in 2019.
Jeff Ruby, center, spoke to the crowd during a ribbon cutting and dry run for the new Jeff Ruby’s Steakhouse at City Center in downtown Lexington in 2019.

Lamb said he was required to do work before and after his scheduled shift that he would not otherwise receive tips from, such as taking out trash, polishing glassware and silverware, mopping, vacuuming, sweeping, folding linens and rolling silverware.

“Unfortunately, servers and bar tenders’ wage rights are often violated by their employers,” said Garrison, a lawyer at Barrett Johnston, in a statement. “While the labor market may be booming, too many employers skimp on their responsibility to pay their employees according to the law — and we’re proud to enforce those laws.”

“Every worker deserves an honest day’s pay for an honest day’s work,” said Bob DeRose of Barkan Meizlish, the Ohio law firm also representing the plaintiffs, in a news release.

Jamie Higdon, of Nashville, performed behind the bar during a ribbon cutting ceremony and dry run for the new Jeff Ruby’s Steakhouse at City Center in downtown Lexington in 2019.
Jamie Higdon, of Nashville, performed behind the bar during a ribbon cutting ceremony and dry run for the new Jeff Ruby’s Steakhouse at City Center in downtown Lexington in 2019.

Similar class action filed against another Lexington restaurant

This is not Garrison’s first time filing a class action lawsuit related to allegations against a Lexington restaurant.

Tony’s Steak and Seafood restaurant agreed to pay $1.5 million as part of a settlement involving employees in Indiana, Kentucky and Ohio locations. The employees alleged the restaurant violated the Fair Labor Standards Act by forcing them and other tipped employees to participate in a tip pool that gave portions of tips to salaried members of management, according to federal court documents and settlement information

Three class-action lawsuits were filed against Tony’s in the three states, which were later consolidated into a single federal lawsuit. John Hartley, a former bartender at Tony’s, was the original person to file suit against Tony’s.

The Tony’s settlement resolved claims for 79 servers in Kentucky, 42 servers in Ohio and 52 servers in Indiana, according to Garrison.

In total, the award for plaintiffs in Kentucky was $546,237.65 — more than Indiana and Ohio’s settlement amounts combined. The average recovery for a class member who participates in the server settlement is $5,250. The largest settlement recovery is more than $35,000, according to court documents.

The filet mignon paired with a cold water lobster tail for $93 at Jeff Ruby’s Steakhouse in downtown Lexington. Jeff Ruby’s was sued in federal court in Ohio for wage and tip theft by a Lexington server.
The filet mignon paired with a cold water lobster tail for $93 at Jeff Ruby’s Steakhouse in downtown Lexington. Jeff Ruby’s was sued in federal court in Ohio for wage and tip theft by a Lexington server.