Milwaukee bar accused of illegal tipping practices in new federal lawsuit

Another well-known Milwaukee bar and restaurant is facing a federal lawsuit over tipping practices that an employee says violate the rules. Fair Labor Standards Act.

Steny’s, Inc. Steny’s Tavern and Grill, which operates as Steny’s Tavern and Grill, and its registered agent, Jerome K. Stenstrup, are named in the civil complaint filed by Steny’s frontman Nathan Witman. The lawsuit was filed on February 12 in the Eastern District of Wisconsin.

In the lawsuit, 800 S. 2nd St. Steny’s at is alleged to have operated an illegal mandatory tip pool that included customarily untipped kitchen workers and falsely claimed a tip credit they were not entitled to receive.

More: Cafe Corazon employees sue restaurant over tip collection policy involving managers

Tip credit is a provision under the Fair Labor Standards Act that allows an employer to count a portion of a tipped employee’s tips toward the employer’s obligation to pay that employee an amount per workweek equal to the minimum wage and overtime compensation required under the FLSA. Minimum wage in Wisconsin is $7.25.

The lawsuit says Witman was one of at least 40 employees affected by the tip pool.

Stenstrup did not immediately respond to a message seeking comment on the case. Steny’s operates two locations; the Walker’s Point restaurant named in the lawsuit and a location in Pewaukee.

Similar case St. Alleged illegal tipping practices at Paul Fish Company’s Milwaukee Public Market location Application was made in January. The lawsuit alleges that the seafood restaurant illegally allowed its managers to take tips earmarked for other restaurant employees.

This article first appeared in the Milwaukee Journal Sentinel: Milwaukee bar Steny’s accused of illegal tipping in lawsuit