Some service industry employers have a practice of charging customers a mandatory service charge or gratuity, allowing the customer to believe that the charge will be distributed among its employees. Despite the customers' expectation, some employers do not distribute the service charge to the employees or distribute only part of it. For example, some employers in the restaurant or caterer charges patrons a mandatory 15% or 20% service charge or gratuity for food service, but distributes only part (or no none at all) of the gratuity to the food servers.
In a recent decision,
Samiento, et al., v. World Yacht, et al., ___ N.Y.3d ____, (Feb. 14, 2008), the New York State Court of Appeals, New York's highest court, made clear that this practice can violate New York's Labor Laws. The Court held that when an employer allows its customers to believe that mandatory service charges are gratuities for its employees, those service charges must be distributed to the employees. Employers that violated the law can be required to pay back the gratuities that they failed to distribute. New York Labor Law provides for a 6-year statute of limitations on such claims. Accordingly, you may have valid claims if you suffered such treatment within the last six years.
To find out about your labor rights and whether you have a claim for back wages, visit the Getman Law Office website at
www.getmanlaw.com .
