Tipped employees from Burgatory restaurants in Pennsylvania may now claim a cash payment from an $850,000 settlement resolving claims of improper wage practices. If you worked as a server or bartender at any Burgatory location during the class period, you may be owed money.
Here’s what to know and how to take action quickly.
Why is there a lawsuit?
A lawsuit filed by former employee Tifani Diamond alleges that Burgatory’s parent company, Surefire Management LLC, violated:
- The Fair Labor Standards Act (FLSA)
The Pennsylvania Minimum Wage Act (PMWA)
The Pennsylvania Wage Payment Collection Law (WPCL)
The claims center on two main issues:
Tip Credit Notice Failures
The lawsuit says Burgatory took a tip credit without giving the legally required notice.Side Work at Subminimum Wage
Tipped employees allegedly performed “side work” (prep work, cleaning, opening/closing tasks) while being paid $2.83/hour with a $4.42/hour tip credit, even though that work should have been paid at the full minimum wage.
The company denies all wrongdoing but agreed to settle for $850,000.
Who qualifies?
You may be included if you:
- Worked as a tipped employee (server or bartender)
- At any Burgatory restaurant in Pennsylvania
- At any time between February 7, 2022 and February 7, 2025
- Had a tip credit taken for your hours worked
There are two groups within the settlement:
1. PA Class (Automatic)
You are automatically included unless you opt out by Dec. 14, 2025.
2. FLSA Collective (Must Opt In)
You are included only if you submit a Claim Form by December 14, 2025. Those who join the FLSA Collective receive their full calculated payment.
Those who stay only in the PA Class (and do not submit a claim) receive 50% of their calculated amount.
How much can people get?
The settlement fund is $850,000, divided after:
Attorneys’ fees (up to $283,333)
Administrative costs
Expenses (estimated $7,700)
Service award ($7,500)
What you receive depends on:
How many hours you worked as a tipped employee during the class period
How much tip credit was taken for your hours
Whether you submit a claim (FLSA) or remain in the PA class
Your settlement notice lists your estimated payment amount.
If you believe your hours are wrong, you may dispute them with documentation (such as pay stubs).
What Are Your Options?
| Option | What It Means | Deadline |
|---|---|---|
| Submit a Claim | Receive 100% of your calculated payment (FLSA Collective) | Dec 14, 2025 |
| Do Nothing | Stay in PA Class and receive 50% of your calculated payment | Dec 14, 2025 |
| Request Exclusion | Remove yourself entirely; receive no payment | Dec 14, 2025 |
| Object | Tell the court you disagree with the settlement | Dec 14, 2025 |
| Fairness Hearing | Court reviews settlement | Jan 20, 2026 at 9:30 a.m. |
How to File a Claim
To receive full compensation, you must submit a Claim Form by December 14, 2025.
You can file:
- Online at the settlement site
- By mail using the Claim Form included in your notice
If filing online, you’ll need the Class Member ID from your notice.
Mailing Address:
Burgatory Settlement
c/o RG/2 Claims Administration
P.O. Box 59479
Philadelphia, PA 19102-9479
Checks will be mailed to the address on your claim or file. Payments will be issued 16 business days after the settlement becomes final or the first business day after Jan 1, 2026, whichever is later.
