Hospitality Industry Legal Risks: New York Restaurant And Caterer Sued For “Retaining 20% Service Personnel Charge”; Seeking Class-Action Status For More Than $1 Million In Tips

“…(the complaint states) a ‘reasonable customer’ would have believed the surcharge to be a gratuity…if customers asked if the waiters and waitresses got tips, they were ordered ‘to respond, as instructed by defendants, that they did receive tips’…(the Hospitality Industry Wage Violation Lawsuitsdefendants) knowing or intentional demand for, acceptance of, and/or retention of the mandatory charges paid by customers when contracting with defendants, when such customers were led to believe that such mandatory charges would be paid to plaintiff, defendants have willfully violated New York law…(plaintiffs) seek class certification, restitution of the tips, and costs…”

A class action claims an upstate New York restaurant and caterer cheated its workers out of more than $1 million in tips.

The defendants added a 20 percent “service personnel charge” to all its banquet hall bills, but servers never saw dime one of it, lead plaintiff Ryan Picard claims in Albany County Supreme Court.

Picard claims the family-owned businesses ran the game for 6 years, at the expense of more than 100 workers.  Named as defendants are six entities associated with the Mallozzi family of suburban Schenectady, who operate bakery, restaurant, hotel and catering businesses in Albany and Schenectady counties.

For more:  http://www.courthousenews.com/2013/04/11/56574.htm

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Filed under Employment Practices Liability, Labor Issues, Liability, Management And Ownership, Risk Management

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