Legal
Referral Service Lawyers Obtain Ground-Breaking
Decision for Wait Staff in Tipping case
NEW YORK—Today, New York
State’s highest court reinstated a complaint
brought by 14 waiters against their employer,
World Yacht, Inc., for illegally keeping the
automatic gratuity charges it collected from
guests. The waiters were represented by Steven
M. Sack and Scott A. Lucas, two attorneys retained
through the NYC Bar Association’s Legal
Referral Service, a program that refers experienced
lawyer referrals to the public. The decision
was 6-0, Chief Judge Kaye took no part.
The waiters alleged that World Yacht, an operator
of dining cruises, added a 20% service charge
at banquets in place of the tip, but failed to
distribute it to the wait staff. The waiters
also alleged that World Yacht failed to distribute
the automatic gratuities that it added to, or
included in, the price charged to certain classes
of customers.
In its decision, the Court of Appeals ruled
that the waiters had a viable cause of action
against World Yacht for violating Labor Law § 196-d,
which prohibits employers from retaining “any
part of a gratuity” or “any charge
purported to be a gratuity for an employee”.
New York State’s highest court held “the
statutory language of Labor Law § 196-d
can include mandatory charges when it is shown
that employers represented or allowed its customers
to believe that the charges were in fact gratuities
for its employees.” The case is being remanded
to the New York County Supreme Court for trial.
“This is a case about the difference between
right and wrong. It is simply wrong for a restaurant
or banquet operator to add a 20% service charge
if it has no intention of distributing it to
the wait staff,” said attorney Scott Lucas. “We’re
glad the Court of Appeals has made it harder
for restaurants and caterers to keep gratuities
that were intended for the wait staff.”
“Our clients, the waiters, were underpaid,
and were turned away by other lawyers until they,
like more than 400 people every day, contacted
the New York City Bar Lawyer Referral Service,
which referred them to us,” said employment
attorney Steven Sack, who has worked with the
Legal Referral Service since 1984. “In
my practice, I represent those individuals who
don’t get their fair share, such as in
this case—where compensation that waiters
should have received was allegedly withheld by
their employer.”
The Legal Referral Service, the largest in the
country, handles over 100,000 calls per year,
directing the public to experienced lawyers in
a vast range of legal fields. The Service can
be reached at 212-626-7373, (212-626-7374 for
Spanish speakers), or www.nycbar.org
The Attorney General, State Department of Labor,
and workers’ rights organizations all filed
amicus briefs with the Court of Appeals in support
of the waiters.
About the Association
The New York City Bar Association (www.nycbar.org)
was founded in 1870, and since then has been
dedicated to maintaining the high ethical
standards of the profession, promoting reform
of the law, and providing service to the profession
and the public. The Association continues to
work for political, legal and social reform,
while implementing innovative means to help
the disadvantaged. Protecting the public’s welfare remains one of the
Association’s highest priorities.
