Adjunct Law Prof Blog

Editor: Mitchell H. Rubinstein
New York Law School

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Sunday, December 22, 2013

Catering Surcharge Not ‘Tip' Under FLSA or New York Law Before 2011

A mandatory 11 percent surcharge added to certain customer invoices by a New York catering business was not a tip owed to food delivery workers under the Fair Labor Standards Act, nor was it a gratuity within the meaning of the New York Labor Law prior to January 2011. Maldonado v. BTB Events & Celebrations, Inc., ___F.Supp. 2d__ (S.D.N.Y. 11/22/13).

However, the court stated that revised state law regulations effective Jan. 1, 2011, require employers to show by “clear and convincing evidence” that they provided sufficient notice to customers that a specific charge was not a gratuity, and the company failed to meet that standard

http://lawprofessors.typepad.com/adjunctprofs/2013/12/catering-surcharge-not-tip-under-flsa-or-new-york-law-before-2011.html

Employment Law | Permalink

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