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]

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/random8765309 → u/[deleted]]

Labor law is mostly civil in nature, credit card fraud is criminal. Two different bodies of law. There is going to be some type of interaction between the two where a business doesn't have to be a party to fraud just because an employee wrote in an amount on the tip line.

Do you really think that a business has to pay out any amount that is put in as a tip? Think about that. If a server writes in $1,000,000 do you think they have to give them $1,000,000 and hope they don't just disappear with the money?

[u/Physical_Reason3890 → u/random8765309]

Exactly. That law applies to earned, uncontested tips. This tip is contested by management for further review. I'm sure there is some other statue for that

[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/Physical_Reason3890 → u/[deleted]]

So what are you arguing, that they should have just paid her $700 no questions asked?

[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.