National Trend of Law Firms and Serial Plaintiffs Targeting the Restaurant
A growing number of wage-and-hour lawsuits across the United States are the result of an emerging national trend: law firms and serial plaintiffs actively targeting the restaurant industry to generate business.
Legal experts describe the situation as “an epidemic of wage-and-hour class action lawsuits against restaurants all over the country.”
Restaurants — regardless of size, location, or reputation — have become one of the main targets for these lawsuits due to the complexity of wage laws, the prevalence of tipped workers, and the industry’s high turnover.
Why Law Firms Are Targeting Restaurants
Restaurants represent one of the best opportunities for plaintiff attorneys because:
Wage-and-hour laws are complex and easy to violate
Tip pooling and tip credit rules cause frequent mistakes
Overtime violations are extremely common
Documentation gaps make lawsuits easier to win
Tipped workers often experience inconsistent pay practices
Many restaurants lack formal compliance training
Employees are now more aware of their rights
Attorneys know these vulnerabilities — and they use them.
The Rise of Serial Plaintiffs
A serial plaintiff is an employee who repeatedly files lawsuits against multiple employers, often with the assistance of a law firm specializing in wage-and-hour litigation.
These individuals often:
Apply to many restaurants
Look for inconsistencies in pay practices
Document small mistakes
File lawsuits or complaints shortly after leaving employment
Because wage laws are strict liability (no intent required), even minor errors can support a lawsuit.
Common Legal Strategies Used Against Restaurants
Law firms frequently build lawsuits around:
1. Tip Pooling Violations
Including non-tipped workers, managers, or supervisors in the pool.
2. Misuse of the Tip Credit
Missing required notices or miscalculating wages.
3. Overtime Pay Violations
Paying overtime incorrectly for tipped employees or salaried BOH workers.
4. Excessive Non-Tipped Duties (80/20 Rule)
Tipped employees performing too many cleaning or prep tasks.
5. Off-the-Clock Work
Employees working before or after recorded shifts.
6. Time Rounding Practices
Rounding down weekly hours or shaving minutes.
7. Improper Deductions
Uniforms, walkouts, breakage, or cash register shortages.
Law firms often stack multiple small violations into a large class-action case.
Why the Trend Is Getting Worse
The spike in lawsuits is driven by:
Law firms aggressively advertising to restaurant workers
Social media encouraging workers to file claims
Remote legal tools making lawsuits easier
WHD investigations creating evidence used in civil suits
Copycat lawsuits among restaurant groups
Higher awareness of worker rights
Large financial rewards for plaintiffs and attorneys
This trend is unlikely to slow down.
Financial Impact on Restaurants
Wage-and-hour lawsuits often result in:
Back wages
Liquidated damages
Attorney fees (often higher than the wages owed)
Civil money penalties
Multi-year monitoring agreements
Damaging press and reputation loss
Class-action exposure
Even small restaurants can face six-figure settlements.
Large groups are seeing multi-million-dollar payouts.
How Restaurants Can Protect Themselves
Restaurants must take proactive steps to avoid becoming the next target:
Conduct a wage & hour compliance audit
Review tip pooling and tip credit practices
Verify overtime calculations
Ensure employees do not perform excessive non-tipped work
Maintain accurate payroll and onboarding documentation
Train managers on wage-and-hour regulations
Implement strong internal controls and HR systems
Document all tip distributions and notices
Prevention is dramatically cheaper than litigation.
To understand how these violations happen and how to prevent them, read our Ultimate Guide to Wage & Hour Compliance for Restaurants.”
Protect Your Restaurant Before It Becomes a Target
With law firms and serial plaintiffs actively targeting the restaurant industry, even minor compliance mistakes can lead to major financial consequences.
Get Your Free Labor Risk Assessment
Find out where your restaurant may be exposed — and what you can do about it.