P.F. Chang’s Legal Settlement in Wage Dispute with Servers

P.F. Chang’s China Bistro Inc. has reached a settlement in a class action lawsuit filed by servers who claimed that the restaurant chain violated federal labor laws by underpaying them. The lawsuit, officially titled Belt v. P.F. Chang’s China Bistro Inc., Case No. 2:18-cv-03831-AB, was filed in the U.S. District Court for the Eastern District of Pennsylvania.

The lawsuit alleges that P.F. Chang’s paid its servers at rates below minimum wage. Servers were reportedly made to perform tasks, referred to as excessive side work, that did not result in tips, thereby violating wage laws. The employees named in the suit worked at P.F. Chang’s locations across various states including Alabama, Florida, and Texas among others, during the period from November 5, 2016, to July 8, 2020. These employees opted into the lawsuit prior to the opt-in deadline.

Although P.F. Chang’s has not admitted any liability or wrongdoing, it has agreed to a settlement to resolve the Fair Labor Standards Act (FLSA) claims against it. Under the terms of this settlement, servers will receive a cash payment calculated on the basis of hours they worked which were paid below the statutory minimum wage. However, the exact sum to be distributed remains undisclosed, and payment estimates have not been provided.

The preliminary approval for the settlement was granted on August 15, 2024, but a final approval hearing date is yet to be set. Class members will have a 30-day window to exclude themselves from the settlement after the final approval hearing date is announced. To receive their payments, eligible class members must return a release form by October 25, 2024.

Involved in the legal proceedings are law firms Nichols Kaster LLP and Skadden Arps Slate Meagher & Flom LLP, with Reena I Desai and Daniel S Brome representing the plaintiffs, and Meredith Slawe representing the defense.