Labor/Employment
May 11, 2022
San Francisco judge considering whether service charges are tips
“For too long, banquet and other hospitality employers in California have deceived customers into paying service charges, which they paid understanding that they were tipping the waitstaff. Because of the appeal court’s decision in this case, it is now clear that service charges under California law may be gratuities that must be paid in full to service employees,” said Shannon Liss-Riordan of Lichten & Liss-Riordan P.C., who represents plaintiffs in the case.
Banquet servers in San Francisco are fighting to acquire tips they believe are rightfully theirs from event venues.
In two separate but strikingly similar certified class actions, the workers accuse Merchant Exchange Productions Inc., also known as Julia Morgan, and Marriott International Inc., specifically the San Francisco Marriott Marquis, of failing to give them proceeds from mandatory service charges collected at events the two compan...
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