24-3:Minimum Wage

Misty Cumbie worked as a waitress in Vita Cafe in Portland, Oregon. The cafe was owned and operated by Woody Woo, Inc. Woody Woo paid its servers an hourly wage that was higher than the state's minimum wage, but the servers were required to contribute their tips to a "tip pool." Approximately one-third of the tip-pool funds went to the servers, and the rest was distributed to kitchen staff members, who otherwise rarely received tips for their services. Did this tip-pooling arrangement violate the minimum wage provisions of the Fair Labor Standards Act? Explain. [Cumbie v. Woody Woo, Inc., 596 F.3d 577 (9th Cir. 2010)] (See Wages, Hours, Layoffs, and Leave.)