MYNORTHWEST NEWS

Seattle celebrity chef settles for $1 million in wage theft lawsuit

Jul 19, 2018, 6:37 AM | Updated: 8:12 am

Seattle celebrity chef Josh Henderson settled with his employees this week for $1 million after they accused him of stealing their tip money.

RELATED: Seattle may be an outlier in minimum wage studies

“When an employer, like a restaurant, fails to pass all the tip money along to the people it was intended for, that is considered wage theft, even though tips aren’t wages,” former Washington State Attorney General Rob McKenna told KIRO Radio’s Dave Ross.

The Stranger reports that Henderson agreed to a $1 million settlement with employees who alleged wage theft. The settlement comes after Henderson sold nine of his Seattle restaurants to another celebrity chef, Renee Erickson. Henderson’s company, Huxley Wallace Collective, owned a range of popular restaurants in the city, including Westward in South Lake Union, Saint Helens in Laurelhurst, and the Great State Burger chain.

Henderson was charging a 20 percent service charge on bills, in place of a tip, at all of his restaurants. He used that money for higher wages, including higher pay for kitchen staff, as well as other benefits for workers. But his staff objected and argued they were entitled to all of the tip money.

Dave Ross points out that it doesn’t seem like Henderson feels as if he did anything wrong, according to a statement he gave to The Stranger:

The legal system we have doesn’t have anything to do with logic or if we are right or wrong, it has to do if you are willing to play the legal game and risk everything you have or are you going to settle and move on.

“It didn’t seem that the restaurant company owner really thought he was concealing where the money was going ….” McKenna said. “He felt he could implement it, and hold some of it back from his workers in order to provide them with benefits and give higher pay to kitchen staff … that seemed to be his rational. Maybe he got bad legal advice. But the fact is, tip revenue is supposed to be passed through straight to employees.”

Wage theft allegations

McKenna said it’s not uncommon for such lawsuits to hit businesses. It ends up being a business decision to settle, rather than spend thousands of dollars, and hours in court proceedings.

“I often hear from companies in lawsuits that they didn’t do anything wrong, but it’s just more sensible to settle the case than to litigate it,” McKenna said. “There’s a lot of costs involved with litigating any case. And there’s uncertainty; you may not win. It’s often a business decision to settle cases that are brought. And plaintiff’s lawyers know that.”

The case of chef Henderson, however, doesn’t appear to line up with that scenario, according to McKenna.

“I don’t know if this is one of those cases though,” he said, noting that many employees also argued that they did not receive legally-required breaks, which is another kind of wage theft.

“And (they argued) the company obscured how the 20 percent service charge was actually being distributed to people who worked at the restaurant,” McKenna said. “That sounds like something that was based on actual evidence. That many employees could probably get together and compare notes and figure out that there’s a 20 percent service charge and they were not seeing that amount of money coming to them.”

MyNorthwest News

Washington dairy herd quarantined after bird flu detection...

Julie Berg, KIRO 7 News

Washington dairy herd quarantined after bird flu detection

The Washington State Department of Agriculture confirmed a detection of highly pathogenic avian influenza H5N1 in a Benton County dairy herd.

3 minutes ago

Kacey Musgraves Seattle...

Michael Strite

Kacey Musgraves performs in Seattle after viral exchange with Kristi Noem

Country music star Kacey Musgraves is set to perform at Climate Pledge Arena two weeks after a post directed at former Homeland Security Secretary Kristi Noem.

47 minutes ago

King County Sheriff's Office investigates deadly Burien shooting...

Regan Gallo-Fenz

26-year-old man killed in Burien shooting; death ruled homicide

One person is dead after a shooting in Burien, and the King County Sheriff is investigating the incident near the 15300 block of First Avenue.

59 minutes ago

crane...

MyNorthwest Staff

Man arrested after reportedly climbing up to 30 stories on construction crane in Seattle

A 27-year-old man was arrested after he reportedly climbed 20 to 30 stories high on a construction crane in Seattle's Fremont neighborhood.

2 hours ago

Ted Bundy...

Associated Press

Utah authorities are connecting serial killer Ted Bundy to another 1970s homicide

DNA connects serial killer Ted Bundy to the death of a Utah teenager, more than 50 years after her body was discovered by a hunter.

2 hours ago

snow...

Ted Buehner

Drivers on Cascade highways should prepare for snow and slick roads this week

Snow is headed for Cascade passes this week, with slick roads possible at Stevens, White and Snoqualmie passes.

3 hours ago

Seattle celebrity chef settles for $1 million in wage theft lawsuit