News, Blog & Cases
Sunday, September 13, 2009
Can Management Share in Automatic Gratuity Charges?
Here are articles regarding two recent tip-pooling cases, one involving the Maui Westin in Hawaii and one against the Sheraton Colonial Hotel & Golf Club in Massachusetts. Both concern so-called "automatic gratuity charges" applied to restaurant customer bills. The suits allege the resorts violated state tip-pooling laws by allowing management personnel to share in such charges rather than distributing them solely among service staff.