Tipping Point: A $21 Million Verdict Shows Why Employers Must Get Tip Pools Right

On March 24, 2026, the Western District of Texas handed down a $21 million judgment against defendant Perry’s Restaurants. The case, Paschal et al. v. Perry’s Restaurants Ltd. et al, serves as a stark reminder that missteps in tip pool compliance can strip employers of the tip credit, double damages exposure, and impose liability that reaches individual owners.... By: Sheppard, Mullin, Richter & Hampton LLP