An arbitrator ruled against two South Carolina waitresses who filed a putative class action to stop the owner of three California Dreaming restaurants from making them share their tips with drink preparers who don’t interact with customers.

The waitresses’ complaint said that, because they are paid below the $7.25 minimum wage and management is given a “tip credit” under the Fair Labor Standards Act, forcing them to contribute to a “tip pool” shared with the service bartenders violates the law.

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