In September 2024, Tracy Shaw, a former server, bartender, and service bartender (“Plaintiff”) of Duffy’s Hr, Inc. and Duffy’s Holdings, Inc. (“Defendants”) at its restaurant at 1804 Cordova Road, Fort Lauderdale, FL 33316, brought this lawsuit alleging that Defendants failed to pay the full minimum wage during periods of time when tipped employees worked for Defendants. Specifically, the Plaintiff alleged that she and other tipped workers did not receive proper notice from Defendants that they would be taking a tip credit against their wages. The Plaintiff sought unpaid wages at the full minimum wage rate. Defendants denied the allegations and argued that at all times its employees were properly paid and received proper tip credit notice.

In February 2025, the Parties participated in mediation and reached an agreement for a settlement on a collective action basis as defined above.

To avoid the burden, expense, inconvenience, and uncertainty of continued litigation, the parties have concluded that it is in their best interests to resolve and settle the action by entering into a settlement agreement. Accordingly, the Plaintiff and Defendants have agreed to a settlement, the terms of which are set forth in the parties’ Collective Action Settlement Agreement, which has been approved by the Court. Defendants have agreed to pay up to a maximum settlement amount of $500,000.00 (the “Maximum Settlement Amount”) to be allocated among the participating Collective Members, as well as to pay attorneys’ fees, litigation costs, and the expenses of administering the settlement.

By signing, dating, and returning the corresponding Claim Form, you agree to be bound by the Settlement Agreement, you consent to become a party plaintiff to this action under the federal Fair Labor Standards Act (“FLSA”), 29 U.S.C. § 216(b), and you agree to fully, finally and forever release, remise, and discharge Defendants Duffy’s HR, Inc. and Duffy’s Holdings, Inc. (including their parents, subsidiaries, affiliates, predecessors, successors and assigns, and each of their respective past and present officers, directors, agents, representatives, attorneys and employees) (the “Released Parties”) from any and all wage and hour claims under Federal and applicable state and local law that accrue from June 19, 2019 through February 3, 2025, including, without limitations, all state and federal claims for unpaid minimum wages, straight time wages, overtime wages, and related claims for penalties, interest, liquidated damages, attorneys’ fees, costs, and expenses. This paragraph shall be construed broadly to include the maximum extent of “wage and hour” claims including any claims related to the amount or timing of any payment of wages. Such release includes but is not limited to state law wage payment and wage assignment statutes.

This case has settled and you have a right to participate in the settlement. Your individual settlement is based on the number of hours that you worked for Defendants during the relevant time period. You were then allocated your proportionate share of the settlement.

Under the allocation formula created by the settlement, you are entitled to receive an anticipated settlement payment of which will be reported half on a W-2 and half on a 1099.

Your Individual Settlement Payment may be subject to a tax breakdown of 50% W-2 wages, and 50% 1099 non-wage income. No tax advice is being provided and you can consult with a tax advisor if you have questions about the tax treatment of this payment. You are advised to seek your own personal tax advice prior to acting in response to this Notice.

This amount is based on a formula that takes into account the number of hours you worked at a tip credit rate between June 19, 2019 and June 30, 2024 (the “Relevant Period”). As described more fully below in Section 6 of this Notice, to participate in the settlement and receive a settlement payment, you must return a properly completed Claim Form so that it is received by the Claims Administrator and postmarked no later than September 8, 2025. If you fail to timely return a completed Claim Form, you will not receive a settlement payment.