Victory for Gloria’s Servers: Fifth Circuit Upholds Workers’ Right to Litigate Wage Claims – A Landmark Win for Employee Rights
Case Overview – Garcia v. Gloria’s Latin Cuisine
Background on the Lawsuit
The Fair Labor Standards Act (FLSA) lawsuit against Gloria’s Latin Cuisine began when Plaintiff Garcia, a former server at the Las Colinas and Colleyville locations, alleged that the restaurant chain failed to pay her and other servers the federally mandated minimum wage. Gloria’s Latin Cuisine, a popular Texas‑based restaurant chain, faces serious claims of wage theft, including improper tip pooling or tip sharing.
Garcia filed the case as a putative collective action, seeking to represent similarly situated servers subjected to the same wage violations. This lawsuit is brought by the wage and hour attorneys at Herrmann Law on behalf of all servers who worked at any Gloria’s Restaurant. The lawsuit seeks recovery of all damages arising under the federal wage law known as the Fair Labor Standards Act. Herrmann Law has agreed to represent any server who worked at Gloria’s Restaurant on a contingency fee. However, to be part of the lawsuit and seek recovery of damages, each server must sign a consent form to join the lawsuit. If you have questions about the lawsuit or would like more information about how to join, please call us at 817-479-9229 e-mail us info@herrmannlaw.com or submit your information online (here) and we will contact you.
Key Allegations in the FLSA Claim
- Failure to pay federal minimum wage.
- Improper application of the “tip credit” under FLSA.
- Unlawful use of the tip pool or tip out money
These allegations highlight serious violations of the FLSA and the rights of low‑wage restaurant workers. The lawsuit seeks to recover unpaid wages, damages, and legal fees.
The Legal Journey – From District Court to the Fifth Circuit
Court Denies Gloria’s Restaurant’s Attempts to Compel Claims to Arbitration
Five months into litigation—and after unsuccessful mediation—Gloria’s Restaurant moved to compel arbitration, claiming Garcia signed an arbitration acknowledgment form. The district court rejected the motion, finding the defendants had waived their right to arbitrate. Gloria’s Restaurants then appealed to the Fifth Circuit.
Fifth Circuit’s Key Findings and Legal Reasoning
Waiver of Arbitration Rights After Morgan v. Sundance
The Fifth Circuit leaned heavily on the Supreme Court’s decision in Morgan v. Sundance (2022), which eliminated the requirement to show prejudice to establish waiver. Now, waiver hinges on whether a party “knowingly acted inconsistently with the right to arbitrate.” Applying this standard, the court affirmed that Gloria’s Restaurants waived any right to try to compel claims to arbitration.
Why This Opinion Matters – Implications for Gloria’s Workers and Beyond
Impact on Servers and Restaurant Employees
This decision is a major victory for the servers at Gloria’s Restaurants and all restaurant workers across the United States. Arbitration often prevents workers from proceeding in court or as a collective or class action. The Fifth Circuit’s ruling ensures Gloria’s servers retain their right to litigate their wage claims in court—ensuring access to justice.
Broader Legal Significance Across FLSA Cases
By reinforcing that post‑Morgan litigation behavior can waive arbitration, this ruling signals to employers that they cannot use arbitration as a delay tactic. This helps protect employees nationwide and discourages bad‑faith litigation strategies.
Commentary from the Paycheck Collector Legal Team
Insights from Attorneys Representing the Workers
“This is a powerful affirmation of transparency, fairness, and the rule of law. Our clients never agreed to arbitration, and the court saw through the defendants’ delay tactics. This win belongs to every restaurant worker who has ever been underpaid and silenced.”
What This Means for Other Workers with Similar Claims
If you are or were a server at Gloria’s Restaurants—or any restaurant—and believe you were underpaid, this ruling opens the door for you to join the collective action or file your own claim. We offer free, confidential consultations.
Arbitration vs. Litigation – What Workers Need to Know
Understanding Arbitration Agreements in Employment
Valid arbitration agreements must be clear, voluntary, and compliant with labor laws. In this case, no enforceable agreement was presented—and the Fifth Circuit emphasized the defendants’ failure to preserve arbitration in early pleadings.
Workers’ Rights Under Federal Labor Law
Under the FLSA, you’re entitled to:
- Minimum wage for all hours worked
- Keep all the tips you earn
- Protection against retaliation for asserting wage rights
Even if you signed an arbitration agreement, you may still challenge its validity—especially in light of this ruling.
What’s Next – Further Litigation
Next Steps for Affected Workers
If you worked at Gloria’s and were underpaid or subjected to an illegal tip pooling, you may be entitled to back pay, damages, and legal fees. Visit our Gloria’s Lawsuit Case Page to see if you qualify.
Know Your Rights – How Herrmann Law Helps Workers Like You
Free Case Evaluations
We provide no‑cost, no‑obligation consultations. You pay nothing unless we recover money for you—that’s our commitment.
Success Stories from Past Wage Recovery Lawsuits
We’ve recovered millions for servers, bartenders, warehouse, delivery, and hospitality workers. Read testimonials and success stories on our website to learn how we’ve helped people recover their rightful wages.
Frequently Asked Questions (FAQs)
What does this Fifth Circuit opinion mean for me as a server?
You can bring your claim in court—even if your employer tries to enforce arbitration. The court ruled Gloria’s waived that right.
What is a waiver of arbitration rights?
It occurs when a party gives up the right to arbitrate by acting in ways that contradict an arbitration right—like engaging in litigation for months then forcing arbitration.
Can I bring claims against Gloria’s Restaurant?
Yes—if you worked at any Gloria’s location and experienced underpayment or improper tip pooling, you may have a valid claim.
How do I know if I signed an arbitration agreement?
Even signed agreements might not be enforceable—especially if your employer didn’t act promptly. We can review your situation and determine validity.
What if I worked at another restaurant chain?
We represent workers from multiple chains and industries. If you experienced similar violations, you may be eligible for representation.
How can Herrmann Law help me?
We offer personalized legal support—from filing claims to recovering funds. We take no fee unless we win or there is a recovery.
Conclusion – A Major Win for Fair Pay and Worker Empowerment
The Fifth Circuit’s ruling in Garcia v. Gloria’s Restaurant is more than a procedural win—it’s a powerful reinforcement of worker rights. If you’ve been underpaid or your tips were misappropriated, you have rights—and we’re here to fight for them.
Contact Us Today: call or text us 817-479-9229 for a free case review, or submit your information online (here) and we will contact you.
