A class-action lawsuit was filed against a New York restaurant during the last several months, which claims the business failed to pay tips to waiters, violating the state's labor laws.
According to the lawsuit, service charges applied to customers' bills should have been given to waiters as a tip or gratuity, however, the charges were kept by the restaurant. The suit claims these actions were in violation of the New York Labor Law.
As a result, the plaintiffs, which number more than 100, are now seeking $5 million in damages from the company.
In addition to their claims, the waiters also explained that many customers believed the service charge was part of their tip, and thus, left lower amounts. Their complaint states the restaurant adds between 15 and 20 percent to all charges, however, the company failed to disclose to their customers that these charges were not tips.
The case highlights the importance of companies of all types adhering to labor laws and being cognizant of proper labor rules. Failure to do so can lead to expensive legal fees for cases involving professional liability.