Servers accuse North Myrtle Beach business of ‘tip scheme.’ Say they weren’t paid wages

A North Myrtle Beach business owner has been accused by employees of operating a "tip pooling scheme" and not paying servers and bartenders a lawful wage.

Two former employees of Buoys on the Boulevard have filed a lawsuit against owner Weldon Boyd; the restaurant; High Hook, which does business as Buoys; and Stephanie Boothe, manager of High Hook.

A message left for Weldon Boyd and his attorney were not immediately returned.

The suit, filed by Sylviarose Morgan and Breanna Miller, claims that servers and bartenders are paid less than required under the South Carolina Payment of Wages Act because of the defendants' use of an unlawful tip credit and tip pooling "scheme."

Tip pooling is a practice where tips received at a restaurant or bar, or another establishment, are placed into a pool that their employer then divides evenly among staff.

The suit claims employees were required at the end of their shifts to put a portion of their tips into the tip pool, which was then divided among staff, including supervisors, managers and the "house."

Employees were paid less than the minimum wage of $7.25 per hour and tips that were received were placed in a mandatory tip pool, the suit said. In addition, employees were charged for uniforms, which is also in violation of the state wages act, the suit said. The uniform was Buoys T-shirts, the suit said.

The suit has been filed on behalf of the plaintiffs and as a class action for non-exempt employees who were employed by defendants anytime within three years who want to join the lawsuit.

Sylivarose Morgan was employed by Buoys from March 2023 through August 2024 as a server and as a head server. Breanna Miller was employed from February 2024 through August 2024 as a server.

The employees claim that they would often work overtime hours, especially during the busy season which ran from May through early September, and were not paid correct wages during that time. Money was deducted from the employees' paychecks without their permission, the suit said.

In addition, the plaintiffs were required to perform non-tipping work, including working in the kitchen and deep cleaning and food preparation while paying them $2.13 an hour and not minimum wage.

A jury trial is being requested and the suit, which was filed on Nov. 1, is asking for damages, attorney's fees and costs and wages and compensation due.