Batali Agrees to $5.25M Server-Tip Suit Accord

Mario Batali on Feb. 26, 2012 in Staten Island, New York. Photograph: Staten Island Advance /Landov Close

Mario Batali on Feb. 26, 2012 in Staten Island, New York. Photograph: Staten Island Advance /Landov

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Mario Batali on Feb. 26, 2012 in Staten Island, New York. Photograph: Staten Island Advance /Landov

Mario Batali, the celebrity TV chef and New York restaurant owner, is often seen with actress Gwyneth Paltrow, taste-testing the culinary delights of Spain in their public television series “On the Road Again.”

Batali took a detour, through his lawyers, to New York federal court in Manhattan, where he was sued and accused of cheating workers of part of their tips, as well as failing to pay overtime and the minimum wage. He and his associate Joseph Bastianich agreed to pay $5.25 million to settle the class- action lawsuit, according to court papers.

Servers at restaurants including Babbo and Del Posto sued in 2010 alleging their employers violated the Fair Labor Standards Act -- in part by pocketing gratuities equal to as much as 5 percent of nightly wine sales.

“Mr. Batali, Mr. Bastianich, and their restaurants unlawfully confiscated a portion of their workers’ hard-earned tips in order to supplement their own profits,” employees said in their complaint.

The settlement agreement, filed March 5, is subject to approval by a federal judge.

The accord in the class-action suit may cover as many as 1,100 employees including servers, waiters and bartenders who work or worked at Babbo, Del Posto, Bar Jamon, Casa Mono, Esca, Lupa, Otto and Tarry Lodge, dating back to 2004, according to court papers.

Everyone Satisfied

“The matter has been resolved to the satisfaction of all parties, Rachel M. Bien, one of the employees’ lawyers, said today by e-mail. A. Michael Weber, who represented Batali, declined to comment.

Batali got into hot water in November by saying bankers are “not heroes but they are people that had a really huge effect on the way the world is operating.”

“The ways the bankers have kind of toppled the way money is distributed and taken most of it into their hands is as good as Stalin or Hitler and the evil guys,” Batali said on a panel sponsored by Time magazine and posted online.

He apologized the next day, after financial industry executives criticized him and called for a boycott of his establishments.

The case is Capsolas v. Pasta Resources Inc., 10-cv-5595, U.S. District Court, Southern District of New York (Manhattan).

To contact the reporters on this story: Phil Milford in Wilmington, Delaware, at pmilford@bloomberg.net; Ian Thomas in New York at ithomas15@bloomberg.net.

To contact the editor responsible for this story: Michael Hytha at mhytha@bloomberg.net.

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