A proposed Class Action Settlement has been reached in the case Graham v. Famous Dave’s of America Inc., Civil Action No. 1:19-cv-00486-DKC, pending in the United States District Court for the District of Maryland (“Lawsuit”). Plaintiff Christopher Graham (“Plaintiff”) is the named plaintiff in the Lawsuit filed suit against Famous Dave’s of America, Inc. (who is referred to as “Defendant” or “Famous Dave’s”). In the Lawsuit, Plaintiff alleges violations of: the Fair Labor Standards Act (“FLSA”), 29 U.S.C. §§ 201, et seq.; the Maryland Wage and Hour Law (“MWHL”), Md. Code, Lab. & Empl. § 3-401 et. seq.; the Maryland Wage Payment and Collective Law (“MWPCL”), Md. Code, Lab. & Empl. § 3-501 et. Seq.; and Maryland common law. Pursuant to the Settlement Agreement, the Plaintiff represents a class of individuals who worked at any Famous Dave’s restaurant in the state of Maryland at any time from February 19, 2016 through October 31, 2017 (“Class Period”) in one or more of the following positions: bartender, server, and/or host (collectively referred to as “Tipped Employees”). As set forth in the Notice sent to Tipped Employees, Tipped Employees may elect to fully participate in the Settlement, exclude themselves from the Settlement entirely, comment in favor of the Settlement, or object to the Settlement. If a Tipped Employee does nothing, they will participate only in the state law portion of the Settlement. A link to the Notice is set forth below.
What is this case about?
As set forth in the Complaint, Plaintiff alleges that Defendant failed to satisfy the notice requirements of the tip credit provisions in federal and state law (and thus should have paid Tipped Employees the full minimum wage for every hour worked – e.g., $8.25 per hour from February 19, 2016 through June 30, 2016, and/or $8.75 per hour from July 1, 2016 through October 31, 2017 in Maryland). Defendant has responded to the Lawsuit and denied Plaintiff’s allegations in their entirety and asserts that at all relevant times it paid its Employees properly and that it satisfied the tip credit provisions in federal and state law.
Who is affected by the proposed Settlement?
The Lawsuit was filed as a class and collective action. In a class action, one or more people called “class representatives” (here, Plaintiff Christopher Graham) sue on behalf of people who allegedly have similar claims. This group is called a “class”, and the persons included are called “class members.” One court resolves the issues for all of the class members, except for those who previously excluded themselves from the class. Here, the Court has certified the litigation as a class action. The Plaintiff is serving as the Class Representative for two settlement claim types of Tipped Employees who worked at Defendant’s Famous Dave’s restaurants in Maryland during the applicable Class Period, February 19, 2016 through October 31, 2017. Those two claim types are (1) the Maryland Class (“MD Class”) and (2) the FLSA Collective.
To date, the Court has certified, pursuant to Fed. R. Civ. P. 23(a) and (b)(3), the following class:
All Tipped Employees (server, bartender, and/or host) of Famous Dave’s of America, Inc. who worked for Famous Dave’s in Maryland at any time from February 19, 2016 to October 31, 2017 who were not paid the full minimum wage by Defendant based on a “tip credit” claimed by Defendant (“MD Class").
Individuals who meet the above definition will automatically become part of the MD Class if the individual does not timely request exclusion from the MD Class.
In addition, the following FLSA collective action has been conditionally certified, pursuant to 29 U.S.C. § 216(b), by the Court:
All Tipped Employees (server, bartender, and/or host) of Famous Dave’s of America, Inc. who worked for Famous Dave’s in Maryland at any time from February 19, 2016 to October 31, 2017 who were not paid the full minimum wage by Defendant based on a “tip credit” claimed by Defendant and opt in to become “FLSA Collective Members” by submitting a valid claim form (“FLSA Collective”).
Individuals who either (i) meet the FLSA Collective definition and submit the Claim Form or (ii) previously submitted a Consent to Sue Form will become part of the FLSA Collective in addition to the MD Class.
The MD Class and FLSA Collective are collectively referred to herein as the “Settlement Class Members.”
What are my options?
You have several options with regard to this Settlement. You can: 1) participate in the Settlement in full by submitting the Claim Form, if you have not already submitted a Consent to Sue Form; 2) object to the Settlement; 3) exclude yourself from the Settlement by mailing a request to opt out; or 4) do nothing and, by default, only participate in the state law portion of the Settlement as part of the MD Class. Details about each option and how each option will affect your rights under the law are explained in the Class Notice.
YOUR OPTIONS AND DEADLINES
| ACTION | EXPLANATION | DUE DATE |
| Do Nothing | If you have not previously submitted a Consent to Sue Form and you do nothing, you will not receive your portion of the distribution attributable to the FLSA, but you will receive your MD Settlement Payment and liquidated damages, and you will still be bound by the Release of Claims for any MD state wage claims as set forth in the Settlement Agreement regarding. If you have previously submitted a Consent to Sue Form and do nothing, you are already a member of the FLSA Collective and will be considered a Settlement Class Member. | No deadline |
| Submit Claim Form | To receive the full portion of the Settlement Amount to which you may be entitled, including your FLSA Settlement Payment, you must complete, sign and return the Claim Form to the Claims Administrator. You will only receive all of the funds you would be entitled to under the Settlement if you submit a Claim Form and elect to become a member of the FLSA Collective, unless you have previously submitted a Consent to Sue Form. By submitting a Claim Form, you are electing to become a member of the FLSA Collective and you will also be bound by the Release of Claims regarding your federal and state wage claims. | October 31, 2022 |
| ASK TO BE EXCLUDED | If you timely complete and submit a Request for Exclusion, you will not participate in these proceedings or receive any money from the Settlement, and your portion of the MD Settlement Payment will be redistributed to those Class Members who did not opt out of the Settlement. If you opt out, you will not be subject to the Release of Claims set forth in the Settlement Agreement and Claim Form. | October 31, 2022 |
| OBJECT | You can object to the terms of the Settlement before final approval. However, if the Court approves the Settlement, you may still be bound by the terms of the Settlement. You may both object to the Settlement and participate in it, but you must timely file a Claim Form to receive your full portion of the Settlement. | October 31, 2022 |
What are the terms of the proposed Settlement?
While it denies any liability whatsoever, under the Settlement Agreement, Defendant will pay a total of Nine Hundred Ninety-five Thousand Dollars ($995,000.00) to settle this Litigation (“Settlement Amount”). The Settlement Amount will be used to cover all payments to Settlement Class Members, fees and expenses incurred by the Claims Administrator in administering this Settlement, attorneys’ fees, costs, and expenses of Class Counsel (as awarded by the Court), and any Service Payment to Plaintiff (as awarded by the Court).
Based on preliminary calculations, the Class Members’ Total Damage Amount is $1,363,692.77 Assuming the Court approves all fees and expenses, and if all Tipped Employees fully elect to become members of the FLSA Collective, a Settlement Class Member could expect to receive approximately 46.07% of their total wages owed during the Class Period. Hence if a Settlement Class Member was owed $1,000.00 in back wages, they would receive at least $460.70 under this proposed Settlement if they opted in to the FLSA Collective, and $368.56 if they failed to become a member of the FLSA Collective, but did not file a request to exclude themselves from the MD Class.
To understand your options and how your rights will be affected, as well as the deadlines for action on your part, please read all of the Notice of Class and Collective Action Settlement.