Archives: Tip-Pooling

Hawaiian Supreme Court Issues Ruling Regarding Restaurant Service Charges

By Greg Mersol on July 23, 2013 Posted in Tip-Pooling

When is a “service charge” a tip? And who gets it, the employer or the employee? These aren’t just questions of etiquette, but are now serious issues for the restaurant and tourism sector in Hawaii. We’ve blogged this issue twice before, on September 9, 2011, and November 1, 2011. A number of resorts in Hawaii … Continue Reading

New York Upholds Tip Sharing By Starbucks Assistant Managers

By Greg Mersol on July 22, 2013 Posted in Tip-Pooling

I had a smart aleck friend who tried to come up with the Starbucks coffee order that had the greatest number of syllables. I can’t remember the winning combination, but it definitely had the words “half-caf” and “cinnamon”, some sort of milk substitute, and a very long word ending with the letters “iato.” He largely … Continue Reading

Court Partially Dismisses and Denies Conditional Certification In Tip-Credit Case

By Greg Mersol on May 23, 2013 Posted in FLSA, Tip-Pooling, Wage and Hour

Anyone who has dined at a restaurant is aware of the importance of tipping, even if the exact rules, like the percentage and how it should be calculated, may be a bit fuzzy at times. From the standpoint of the restaurant, too, the standards of what may or may not be tipped work for taking … Continue Reading

Hawaiian Court Finds That Employees Were Not Entitled To Resort Service Charges

By Greg Mersol on November 1, 2011 Posted in Tip-Pooling

Employees’ Tip Ball Fails To Save Game; Series Continues This blog and Baker Hostetler’s HospitalityLawg often come across the same cases, particularly because the hospitality industry is increasingly the target of employment class actions. The entry below was largely prepared by our hospitality industry team, who we thank for their efforts. We along with our … Continue Reading

Second Circuit Finds FLSA Collective Actions and State Law Class Actions Compatible

By Greg Mersol on September 26, 2011 Posted in FLSA, Overtime Claims, Tip-Pooling

One of the hottest topics in class/collective action litigation this year has been the availability of both an FLSA collective action and a state law class action in the same suit. We’ve already written several times about some of these cases, with a distinct difference in approach and outcome among the various courts. Some courts … Continue Reading

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

By Joyce Ackerbaum Cox on September 9, 2011 Posted in Tip-Pooling, Wage and Hour

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

$10 Million Settlement for Exotic Dancers a Not-So-Exotic Outcome in Wage Class Actions

By Holli Hartman on April 8, 2011 Posted in FLSA, Independent Contractors, Tip-Pooling, Wage and Hour

If you think wage and hour class actions aren’t very sexy, you’re wrong. A class of exotic dancers in California and other states have received preliminary court approval of a $10 million settlement of their class action suit in which they claimed that their adult nightclub employers misclassified them as independent contractors. Trauth v. Spearmint … Continue Reading

Maryland Court Rules Employer Cannot Participate in Employee Tip Pool

By Joyce Ackerbaum Cox on March 30, 2011 Posted in FLSA, Tip-Pooling

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

By Joyce Ackerbaum Cox on January 26, 2011 Posted in FLSA, Rule 23, Tip-Pooling

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

Summary Judgment Denied, But No Class Certification In Tip Dispute

By Greg Mersol on October 12, 2010 Posted in FLSA, Independent Contractors, Tip-Pooling, Wage and Hour

On September 30, 2010, the United States District Court for the District of Massachusetts entered an interesting order in a case involving multiple issues under the Fair Labor Standards Act. In Travers v JetBlue Airways.pdf., airline JetBlue engaged an independent contractor named Flight Services and Systems (“FSS”) to provide skycaps Boston Logan Airport. Because … Continue Reading

21 Club “Gets Served” On Overtime Class Claims

By Todd Dawson on August 23, 2010 Posted in Arbitration, Class Certification, FLSA, Overtime Claims, Tip-Pooling, Wage and Hour

“……and Please Remember to Tip Your Bartender And Waitress.” The famous 21 Club in New York was on the Curly end of a Larry-esque double-slap from the Southern District of New York last week. Alderman v. 21 Club.pdf Case No. 1:09-cv-2418 (Aug. 20, 2010). By way of background, the plaintiff employees in Alderman are seeking to … Continue Reading