Joyce Ackerbaum Cox

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Court Finds That Employer’s Failure to Pay “Service Charges” To Tipped Employees Violated Hawaiian Law

In an August decision from a federal court in Hawaii, a hotelier was found liable for unpaid wages to a group of over 100 wait staff employees who claimed the company cheated them out of tips by retaining a portion of gratuity fees added to guest checks. The Planitiffs’ factual allegations focused on the fail­ure … Continue Reading

Maryland Court Rules Employer Cannot Participate in Employee Tip Pool

Once again, tip pool cases are getting attention in the federal courts.  Most recently, several former employees of two taverns in Baltimore sued under the Fair Labor Standards Act (“FLSA”) and Maryland state laws alleging unlawful wage and hour practices.  Gionfriddo vs Zink.pdf, 2011 WL 855799 (D.Md. March 11, 2011).  Specifically, they claimed the owner … Continue Reading

Seventh Circuit Finds That Overtime State Class Actions And FLSA Collective Actions Are Not Incompatible

Restaurants, hotels, and others in the hospitality industry recently have been faced with a rash of collective action cases brought under the Fair Labor Standards Act (FLSA) challenging their tip pooling practices.  From high-end, trendy restaurants in Manhattan to large, popular chains with multiple locations throughout the country, there has been a significant increase in … Continue Reading