News about Mac and Bob's
September 27, 2018
Mac and Bob's has been in the news and a topic of social media in the past week. Here's an update for those who might have missed it.
Decades ago, Bob Rotanz decided to have wait staff pool one percent of their tips at the end of the night to give to the dishwashers, instead of the host staff as is customary in many restaurants.
Federal law allows tip sharing with other dining room staff, but not kitchen staff, unless servers are paid minimum wage. Unaware that this practice was in violation of the law, Mac and Bob's was hit with a lawsuit from a former employee earlier this year. That case was settled, but another former employee, represented by the same lawyer, filed another suit.
In response to the second suit and in anticipation of the possibility of many more lawsuits, Mac and Bob's has filed for Chapter 11 bankruptcy to reorganize. They will not close during this process.
Rotanz says he decided to reallocate pooled tips decades ago because the dishwashers, one of whom has been employed by Mac and Bobs for more than 20 years, have "the most difficult job in the restaurant, especially on weekend nights."
The response from the Salem and Roanoke College communities to Mac and Bob's plight has been swift and supportive. A GoFundMe effort has raised more than $100,000 to help offset legal fees. The effort now says any funds raised and not used for legal fees will be used to set up a scholarship fund for Mac and Bob's employees. Several groups from around Salem and Roanoke have organized meet-ups and events at Mac and Bob's to show support.
If you'd like to read more about the situation, you can find coverage here: