Chu Chung v. New Silver Palace Restaurant, Inc.

How courts have described this case

Verbatim parenthetical descriptions written by other courts when citing this decision. Ranked by citation-network relevance.

• noting that “section 196-d clearly prohibits part-owner employees who wield such broad managerial authority . . . and who are thus clearly the ‘employer[]’ from sharing tips”
• “The automatic stay . . . affects only [the debtor]; it does not apply to plaintiff’s [FLSA] claims against the [debtor]’s non-debtor co-defendants.”
• “Congress, in crafting the tip credit provision ... of the FLSA did not create a middle ground allowing an employer both to take the tip credit and share employees’ tips.”
• “‘[T]he Second Circuit has applied an ‘economic reality test’ to determine whether a given individual should be held liable as an employer for violations of the FLSA.”
• “[T]he practice of forced sharing of tips with management is . . . an illegal practice, regardless whether or not the members of management were engaged in restaurant services that could be the subject of tipping.”

Source: CourtListener parenthetical corpus (CC0).