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Supreme Court denies DineEquity-owned Applebee's appeal in minimum-wage suit

January 17, 2012

The Supreme Court on Tuesday turned down an appeal from Applebee’s International Inc., which is battling a lawsuit from more than 5,500 bartenders and servers accusing the restaurant chain of underpaying them.

The high court declined to hear Applebee’s case, which focuses on a practice in which restaurants pay employees reduced minimum wage by factoring in the extra boost provided by tips.

Known as a “tip credit,” the practice is banned in states such as California and Minnesota but permitted in Missouri, where many of the plaintiffs work.

Many of those employees claimed that, because they spent more than 20% of their time performing duties such as cleaning and prepping, they should earn full minimum wage during hours worked without tips.

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