Steel Coop/Sunset Restaurant $475K Wage and Hour Settlement

The Steel Coop LLC

Employees who worked as a server or bartender for The Steel Coop or Sunset Restaurant at any time between Dec. 23, 2021, and April 15, 2025, may be eligible to claim a cash payment from a collective action settlement.

The Steel Coop LLC agreed to pay up to $475,000 to resolve a collective action lawsuit alleging it failed to pay servers and bartenders full minimum wage and did not provide proper notice regarding the use of tip credit.

Who can file a Steel Coop claim?

Collective action members must meet the following criteria:

They worked as a server or bartender for The Steel Coop or Sunset Restaurant.
Their employment occurred at any time between Dec. 23, 2021, and April 15, 2025.

The settlement administrator identified potential collective action members based on employment records The Steel Coop LLC and Sunset Restaurant provided. Those who received a notice about the settlement were identified as a putative collective member.

How much can collective action members receive?

Pro rata payment: The amount each collective action member can receive depends on the number of hours they worked at a tip credit rate during the specified period. The net settlement fund is divided among all participating claimants in proportion to their tip credit hours worked.

Each collective action member’s share is calculated as (Their tip credit hours / total tip credit hours of all claimants) x net settlement fund. The net settlement fund is the total settlement amount minus deductions for attorneys’ fees, settlement administration costs and a service award for the named plaintiff.

Payments will be divided as follows:

50% of the payment will be reported as W-2 wages (subject to standard payroll tax withholding)
50% will be reported as 1099 non-wage income (not subject to payroll tax withholding)

How to claim a collective action rebate

Collective action members can file a claim online or download and print the PDF claim form, complete it and mail or email it to the settlement administrator. The claim form must be postmarked or received by email or online submission no later than Sept. 26, 2025.

Settlement administrator's contact information: ILYM Group Inc., P.O. Box 2031 Tustin, CA 92781, claims@ilymgroup.com.

Collective action members whose address changes before they receive payment should notify the settlement administrator promptly to update their contact information.

Required information

To file an online claim, collective action members must provide their last name and the ILYM ID located on the settlement notice they received in the mail.

$475,000 settlement fund breakdown

The $475,000 settlement fund covers:

Settlement administration costs: $6,392.91 (estimated)
Attorneys’ fees and costs: $160,862.08
Service award to named plaintiff: $10,000
Payments to eligible collective action members: Remaining funds

Important dates

Deadline to file a claim: Sept. 26, 2025

When is the Steel Coop settlement payout date?

Payments will be made after the court grants final approval of the settlement and any appeals are resolved.

Why is there a collective action settlement?

The collective action lawsuit alleged The Steel Coop LLC and Sunset Restaurant failed to pay the full minimum wage to tipped employees. The claims included:

Not providing proper notice of the use of a tip credit as required by law
Requiring servers and bartenders to spend more than 20% of their workweek performing non-tip-producing duties at subminimum wage rates
Requiring employees to share or surrender portions of their tips

The defendants denied all allegations but agreed to settle the case to avoid the burden, expense and uncertainty of continued litigation.