The court of appeals affirmed a judgment of the district court. The court held that the Fair Labor Standards Act does not restrict employee tip-pooling arrangements where an employer does not take a tip credit against its employees’ statutory minimum wages.
Woody Woo, Inc., owned and operated a café at which Misty Cumbie worked as a server. Woody Woo paid Cumbie and its other servers cash wages at or exceeding the state minimum wage, which was more than the federal minimum wage under the Fair Labor Standards Act (FLSA).
