Coyote Ugly overtime class action getting ugly

April 29, 2013 by

Blog Wage and HourAn overtime class action is grabbing headlines across the nation over claims of unpaid overtime and alleged illegalities involving tip pools, but also with regard to sensational claims appearing in social media, related to the case.  The lawsuit has its roots in Nashville, but encompasses the laws of many states given the national status of the lawsuit, which involves current and former employees of the Coyote Ugly chain nationwide.

Coyote Ugly Saloon Development Corp. (Coyote Ugly) is one of three defendants in the class action lawsuit filed in Tennessee Middle District Court, and involves claims of abuse of overtime laws through an alleged requirement for employees to work off the clock, together with claims the defendant allowed an illegal tip pool.  The plaintiffs take issue with an apparent policy maintained by the defendants that security guards employed by the chain at their various locations are allowed to claim five percent from gross tip receipts.  In addition, in situations where security personal participate as “barbacks” – a term used variously to reference activities identified as assisting bartenders, re-stocking bars (including the exchange of beer kegs) and the cleaning of counters – Coyote Ugly allegedly allows them to claim 10 percent of the tip pool.

The defendants in the unpaid overtime lawsuit argues that security personnel undertake an important role for the facilities at which they are employed, assisting clients and contributing to the overall atmosphere of the themed bar. Thus, the defense argues, they are entitled to a share of tip receipts.

Plaintiff Sarah Stone, who served as a bartender-dancer at a Coyote Ugly facility in Oklahoma City, is one of two key plaintiffs seeking damages for alleged retaliation due to their involvement in the class action lawsuit.  Stone alleges that a regional manager employed at the Oklahoma facility at the time made a threat against her in a status update to his Facebook page. Daniel Huckaby, who is now identified as director of operations for the Coyote Ugly chain, admitted to being intoxicated on the night he posted the alleged threat to Facebook, and claimed not to recall undertaking the post at all.

Also seeking damages for retaliation is Misty Blu Stewart, the other plaintiff who initiated the lawsuit. The former bartender-dancer from Nashville testified that a blog entry posted by the CEO of Coyote Ugly, Liliana Lovell, left Stewart ashamed and “extremely embarrassed.” The blog post, to Lil Spill, allegedly referenced Stewart in a derogatory way and appeared soon after Stewart initiated the overtime pay lawsuit.

Plaintiffs in the Nashville-based class action lawsuit claim that unpaid overtime for working off the clock and tips claimed by security personnel, translates to money that should have been paid to the plaintiffs. The lawsuit also names CUS Nashville, LLC and Liliana Lovell, as defendants.

Steve Larson
An experienced trial lawyer who handles both hourly and contingent fee cases, Steve has expertise in class actions, consumer cases, antitrust litigation, securities litigation, corporate disputes, intellectual property disputes, unfair competition claims, employment matters, and disputes involving family wealth. Steve regularly represents individuals and businesses in federal and state court and has obtained class-wide recovery in multiple class actions. A veteran practitioner, Steve's clients value his creative approach to resolving complex litigation matters.

Legal Disclaimer

The information contained in this blog does not constitute legal advice, and does not create an attorney-client relationship. We make no claims, promises or guarantees about the accuracy, completeness, or adequacy of the information contained in or linked to this blog.