A dispute over wage practices at a restaurant chain has led to a lawsuit alleging that an employee was terminated for reporting concerns about compliance with federal labor laws. The complaint claims that the firing occurred shortly after the employee raised issues regarding how tipped workers were paid, which could have implications for workplace protections and pay standards.
The lawsuit was filed by William Murray McCoy IV in the United States District Court for the Southern District of Texas on March 19, 2026, naming Bar Louie Restaurant Group, LLC as the defendant.
According to court documents, McCoy worked as a Front of House Manager at Bar Louie from March 2017 until November 14, 2025. He alleges that during his employment he performed his duties “flawlessly and with absolute excellence.” The complaint states that McCoy became concerned about whether Bar Louie’s method of paying its employees complied with the Fair Labor Standards Act (FLSA), particularly regarding the administration of the tip pool and minimum wage requirements for tipped employees.
The filing explains that in restaurants, certain staff such as bartenders and waitstaff may be paid below minimum wage if their tips make up the difference. However, managers or supervisors are not permitted to take any portion of these tips. McCoy reports that some management personnel were allegedly asking to be paid from the tip pool. “McCoy was being told by tipped employees that Defendant (through some of its management personnel) was violating the FLSA,” according to the complaint.
Additionally, McCoy claims he received complaints from waitstaff who said they were required to perform significant non-tipped duties such as cleaning up or closing after hours without proper compensation. Employees reportedly questioned whether their pay met federal minimum wage standards when performing these tasks off-the-clock.
The document states that McCoy brought these concerns verbally to General Manager John Murphy several times, most recently around June 2025. When asked about addressing these issues, Murphy allegedly responded he “didn’t have time to deal with it now.” On November 13, 2025, McCoy sent an email outlining his concerns about FLSA compliance to multiple members of Bar Louie’s management team and corporate staff.
The following day, November 14, 2025, McCoy’s employment was terminated. When he asked Murphy why he had been fired, Murphy replied: “You know why.” Robert Martin, Director of Operations South for Bar Louie Restaurant Group, was present via speaker phone during this conversation.
McCoy asserts in his complaint that “the timing of his termination”—one day after raising his concerns formally—demonstrates retaliation for protected activity under federal law. He further describes suffering mental anguish following his dismissal: “Mr. McCoy has had to increase his anxiety and depression medication,” and his psychiatrist recommended regular therapy due to increased depression.
Legally, McCoy argues that employees who report suspected violations of the FLSA are protected from employer retaliation even if their complaints are ultimately mistaken but made in good faith. The suit references case law supporting claims where close timing between protected activity and adverse action can indicate a causal link: “the Fifth Circuit has found temporal proximity of up to four months sufficient to show a causal link.” The complaint also cites legal precedent suggesting protection applies even if complaints are not made reasonably or in good faith.
As relief from the court, McCoy seeks back-pay and liquidated damages (a doubling of back-pay), compensatory damages for emotional distress, reinstatement or front-pay in lieu thereof if appropriate, attorney’s fees as provided by statute, pre-judgment and post-judgment interest as allowed by law, costs associated with prosecuting the claim, and any other relief deemed just by the court.
Plaintiff is represented by attorney Andrew L. Mintz of Andrew L. Mintz PLLC in Houston. The case identification number is 4:26-cv-02200.
Source: 426cv02200_William_Murray_v_Bar_Louie_Complaint_Southern_District_of_Texas.pdf
