U.S. District Judge Karen K. Caldwell certified a settlement class of 194 current and former Tip Credit Employees who worked at Carson's on Main, Carson's at Andover, or the Hudson event space between April 21, 2022, and December 30, 2025.
The suit alleged Carson's paid servers and bartenders below the statutory minimum wage and required tip-sharing with non-tipped staff and management while failing to compensate employees for certain event work.
Under the settlement, each class member will receive a minimum $25 recovery with remaining funds allocated on a pro rata basis. Named Plaintiffs Laken B. Pinkerman and Jacqueline Rowe will each receive $5,000 service awards in exchange for a general release. Class counsel will receive one-third of the common fund, with the remainder covering settlement administration costs.
The court found the settlement the product of arm's-length negotiations conducted with an experienced mediator, with no evidence of fraud or collusion. Caldwell concluded the settlement falls within the range of possible approval and does not provide unduly preferred treatment for class representatives.
Notice will be sent by mail, email, and text message to class members. The 90-day notice period runs of mailing.
A fairness hearing is scheduled for October 22, 2026, at 1:00 p.m. at the United States Courthouse in Lexington.