Hard Rock Cafe International USA Inc. on Thursday settled a proposed class action brought by its New York-based servers and bartenders that alleged the restaurant chain had unlawfully withheld tips earned during private events.  Hard Rock agreed to pay $230,000 to a class of 469 food and beverage severs who worked private parties held at the restaurant’s Times Square and 57th Street locations in New York.  “By reaching a favorable settlement prior to summary judgment motions or trial, plaintiffs seek to avoid significant expense and delay and ensure a speedy, risk-free recovery for the class,” a memorandum in support of the settlement said.  Server Robert Lacovara, who worked as a bartender for Hard Rock from October 2009 to June 2010, brought the suit Oct. 13, 2010, claiming the restaurant’s New York locations misappropriated an 18-20 percent gratuity fee that was charged to customers during private parties, in violation of state labor laws.

Hard Rock billed "service charges" to private event customers, leading them to assume the gratuity would be paid to the service staff, the complaint said. But Lacovara claimed Hard Rock kept a portion of the tip payments, cheating event employees out of rightfully earned pay.  The Orlando, Fla.-based restaurant chain denied the allegations in a February answer to the complaint, saying it had acted in good faith and did not intentionally deny the servers any rights under state laws.  Under Thursday’s deal, servers will receive payments from the settlement fund based on the number of private events they worked at the New York Hard Rock locations between October 2004 and June 2011. Hard Rock produced private event contracts, invoices and other documents that allowed the servers to calculate the wages and damages owed to the class, the settlement agreement said.  The joint motion also seeks to elect Outten & Golden LLP as class counsel. If the deal is approved, the firm will receive a third of the settlement plus $2,000 in attorneys fees, according to the motion.  (click on link to read full story)