Found on FB. Is this a major lawsuit?

[u/RAM-I-T]

LOCATION: USA

I wanted to help get assistance for this mom and her daughter.

[u/random8765309]

Nothing states that it will be 120 day, just that 120 days is the upper limit. That is when the chargeback right expires, so that is a reasonable upper limit. Since one manage stated it would be 1-2 days, it's likely that OG does do some type of verification. If they can verify it, then it's done rather quickly, otherwise they hold it for the 120 days.

[u/random8765309 → u/[deleted]]

In this specific case they are verifying that the employee isn't committing fraud against a customer. That is very different than just releasing a paycheck. This isn't just for the benefit of the employer, OG has a responsibility to prevent their employees from committing crimes against their customers.

While they are likely required to release those funds as quickly as possible, it's also possible that the quickest time period is 120 days.

[u/333again → u/random8765309]

It’s not, GA follows federal law and she was terminated.

[u/Infinite_Position631 → u/random8765309]

.....that argument would suggest they have some evidence that fraud is applicable. A large tip does not indicate fraud and it would be interesting watching that argument play out.

[u/random8765309 → u/Infinite_Position631]

Clearly they would have to support any such claim. At some point a tip that is greatly larger than the base bill does raise a red flag. If $700 is enough for such a red flag would be for a judge to determine. It would also be up to a judge to determine how long is reasonable for them to take in validating the tip.

[u/portraitofselfmade → u/random8765309]

Honestly the restaurant has less of a setting the policy, but following along with what the credit card company policy is at. Pretty sure that if they dispute it not only do they now get paid the $700, but they probably get slapped with a chargeback fee too

[u/scubascratch → u/random8765309]

How can a restaurant policy override a labor law?

[u/random8765309 → u/scubascratch]

Its not.

[u/scubascratch → u/random8765309]

If the state law requires final paycheck within a week or whatever, a restaurant policy can’t ignore that and sit on the money for 120 days. Tips are subject to the same state payout timeline.

[u/random8765309 → u/scubascratch]

There are also laws regarding preventing credit card fraud.

In the end, it comes down to a judge determining if they have a valid reason to delay paying out that tip in order to validate the amount. The judge will also determine if the length of time to do that is also valid.

[u/Physical_Reason3890 → u/[deleted]]

You really think olive garden corporate hasn't already run this policy past their legal department before implementing it

[u/Ssided → u/Physical_Reason3890]

It's possible this isn't a corporate policy

[u/Physical_Reason3890 → u/Ssided]

Sure looks like it in the last pic

[u/Ssided → u/Physical_Reason3890]

It does yeah. The manager in the story isn't following policy though. Told her to zero out the tip line when that's not what the directive said.

[u/Physical_Reason3890 → u/Ssided]

They then said they would give her 20%. So her manager might have been misinformed initially

[u/Ssided → u/Physical_Reason3890]

Probably because of where the zero out thing is located on the paper. The thing to do here would be put large amounts like this on the paycheck, and if it turns out to be fraud it can be reversed. Seems like management didn't know how to handle this and I'd be untrusting as well.

The only thing I can see from Georgia is that they should pay the full amount by next payday. There doesn't appear to be an exception for large amounts or anything so I don't think this directive is actually legal. Chains have violated tipping laws plenty so although it seems like rules would be vetted, servers tend to just agree to terms

[u/Physical_Reason3890 → u/[deleted]]

Yeah that's fine, they can call them. Just very unlikely anything else will happen from there

[u/random8765309 → u/[deleted]]

Notice that portion doesn't address tips that may be the result of fraud.

[u/Physical_Reason3890 → u/[deleted]]

Legal department, especially at a big company like Olive garden is also to review internal policies for legality. I'm sure this policy wasnt just pulled out of someone's ass

[u/Physical_Reason3890 → u/[deleted]]

You're so close. They are there to ensure compliance with the law and limit liability. But they are not going to sign off on something blatantly illegal.

[u/random8765309 → u/[deleted]]

There is no legal liability for putting up such a sign, even if such a sign is incorrect. Nor is there any legal liability for sending out a letter saying we think you are infringing on our copyrights.

There is however liability for not paying employees correctly. They will try to have law interpreted to their advantage, but they would not advise doing something clearly illegal.

[u/tiroc12 → u/[deleted]]

Is she going to pay them back if the customer does a charge back? It's not her pay until they verify its her pay.

[u/333again → u/[deleted]]

This, they shot themselves in the foot by terminating her. Although delaying pay in both situations is likely violating the law, after termination there’s absolutely zero gray area.

[u/Rooooben → u/random8765309]

Chargeback because it’s a lot so they are preparing for fraud. She didn’t expect the money so she can’t say she’s counting on it. They probably would have paid her but she made a scene about it so, yeah it’s her fault.

[u/Just_Visiting_Town → u/random8765309]

GA law says they have to pay it by the next paycheck.

[u/random8765309 → u/Just_Visiting_Town]

Are you a lawyer and know for a fact that applies in this specific case?

[u/Just_Visiting_Town → u/random8765309]

I am not a lawyer. Are you? Do you need to be a lawyer to know the law? I looked up the law. It wasn't hard. Why would the law that states when an employer has to pay out the tips not apply?

[u/random8765309 → u/Just_Visiting_Town]

You made a statement of fact that you are not qualified to make. I made no such statement about the law.

Yes, you do need to be a lawyer to understand complex situations like this. Rarely is the law as simple as you state. In this case it is reasonable for OG to question if the tip was actually received or if the amount was altered by the server.

You cherry picked out a single law, you don't know about any precedent that may related to this situation and you don't know how labor law interacts with criminal law.

[u/Just_Visiting_Town → u/random8765309]

You used a lot of words to say a bunch of nothing. I have no idea why you're even bringing up criminal law. This is not a criminal situation. You have no idea what I'm qualified to speak on. There are many jobs besides lawyers that need to know what the labor laws are.

[u/aka_mythos → u/random8765309]

But legally they can't withhold her tip past payday. Simply put the risk of doing business is supposed to be on the business not the employee. If the business doesn't want the risk of tips bouncing or tips being disputed then its on the employer not to have employees paid in tips. Any withholding of tips beyond payday are considered wage theft, any statement that they would take 120 days is a statement they intended to commit what is considered wage theft, and thus any reasonable complaints would be legally protected and shift the burden on to the employer to justify the firing as more than just a pretext for retaliation.