On September 17, 2025, Frankel Syverson PLLC filed a lawsuit on behalf of former Server and Host who work for Liberty Market, seeking unpaid wages including minimum wage and tips that were withheld as part of a Tip Pool.

In the lawsuit, the lead plaintiff alleges that Liberty Market utilizes a Tip Pool arrangement for certain employees, which requires Leads, Bartenders, Servers, Kitchen Expo, Front Expo, Food Runners, Bussers, and Hosts to pool their tips. Liberty Market then utilizes those tips as a credit to pay the employees three dollars less that the minimum wage, with the tips making up the difference.

The lawsuit alleges that the Tip Pool is unlawful because it includes employees who are management and back of house staff who do not customarily and regularly receive tips. The lawsuit also alleges that Liberty Market unlawfully reduces the employees’ tips when there is a cash register shortage, invalidating the tip credit they take. The lawsuit also alleges that Liberty Market fails to pay the tipped employees wages they are entitled to for their mandatory training. The named plaintiff is pursuing the claims in the case on behalf of himself as well as the other employees who are required to participate in the Tip Pool.

The lawsuit was filed in federal court in the District of Arizona and can be read here. If you are an employee who was part of a Tip Pool that you believe is unlawful or another worker who believes you were not paid properly, the lawyers at Frankel Syverson PLLC are here to help. Our lawyers work hard to ensure the wage rights of workers under federal and state law.

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Ty Frankel