In accordance with the Ninth Circuit and several other federal court rulings, the Court of Appeals for the Fourth Circuit yesterday held that an employee cannot bring a claim for wages based on allegedly misappropriated gratuities under the FLSA unless the employer used the tip credit set forth in 29 U.S.C. § 203(m). Trejo
misappropriation
Following Woody Woo, Federal Court In Utah Rejects Employee Gratuity Claim Since No Tip Credit Taken
By Noel P. Tripp on
Joining several other recent federal court decisions, including a decision invalidating recently promulgated Department of Labor regulations purporting to address the issue, Judge Ted Stewart of the District of Utah has ruled that an employee has no claim for allegedly misappropriated gratuities under the FLSA unless the employer elected to take the tip credit…
New York Court of Appeals Issues Starbucks Tip Ruling
By Noel P. Tripp on
Posted in New York State, Tips
In a significant victory for New York employers, the New York Court of Appeals has now held that Starbucks’ tip splitting practices did not violate New York law. In answering the certified questions in In Re Starbucks, the Court held “an employee whose personal service to patrons is a principal or regular part of…
New York Judge: Deduction of Full “Seamless Web” Fees from Gratuities Potentially Violates FLSA, New York Law
By Noel P. Tripp on
Posted in Tips
In a decision sure to attract attention within the New York hospitality industry, Judge Alison J. Nathan of the United States District Court for the Southern District of New York ruled in a case of first impression that deducting the full amount of service fees charged by internet food delivery sites (including popular web…
Southern District of New York Judge Ratifies Legality of Participation in Tip Pool By Captains and Banquet Coordinator
By Noel P. Tripp on
Posted in New York State
While the New York State Department of Labor’s new Hospitality Industry Wage Order clarified many wage and hour issues for industry employers, the appropriateness of tip pool participation of certain categories of employee continues to be an area of uncertainty. On January 13, 2011, Federal District Judge Laura Taylor Swain granted summary judgment to Manhattan restaurant…
California’s Highest Court Rules That Employees Do Not Have A Private Right of Action Under Tip Misappropriation Statute
By Noel P. Tripp on
Posted in California
As analyzed in more detail here, the California Supreme Court recently ruled that the California labor code provision prohibiting employers from taking or sharing in tips left for employees by customers – Cal. Lab. Code § 351 (“Section 351”) – does not provide private litigants with a right to sue their employers directly…