LongHorn Steakhouse has enjoyed the benefits of its nationwide growth in the US but is also suffering a few drawbacks, including a class action lawsuit leveled against the company. The lawsuit filed in a Pennsylvania federal court alleges that GMRI Inc., which operates the LongHorn Steakhouse locations, failed to properly compensate tipped workers.

Although federal minimum wage laws and several state laws let companies like GMRI claim tip credits, the restaurants must compensate the employees in line with the standard minimum wages relevant to their locations. The lawsuit leveled against GMRI alleges that the company failed to do so, and the company has faced similar charges in the past as well.

In 2012 and 2021, lawsuits were filed by former employees of several Darden Restaurants including LongHorn, alleging that LongHorn failed to compensate tipped workers according to the law. Although GMRI has navigated through such litigation successfully until now, if this attempt succeeds, many locations will need to adjust their employment practices.