The TV star denies any wrongdoing in the case but said in court documents that he would rather pay a settlement than go to trial.
The money will be served up to waitstaff, bartenders, bussers and runners who worked at three of Flay's New York City restaurants -- Mesa Grill, Bar Americain and the now-closed Bolo -- between January 2003 and September 2009. The workers claim that Flay made them buy their own uniforms and pay to have them cleaned and didn't give them a portion of the tips charged to private-party bills.
The lawsuit was originally brought in January by three servers from Bar Americain, according to DNAInfo.com. Two other plaintiffs from Mesa Grill and Bolo had joined them by the time Flay decided to settle the case.
About $250,000 in legal fees will be subtracted from the amount paid to the restaurant staffers, according to the New York Post. The settlement papers were filed Wednesday in Manhattan federal court, and a June 22 hearing was scheduled to approve the deal.
Flay stars in the popular Food Network shows Throwdown with Bobby Flay and Iron Chef.