“…the case involved a portion of service charges — which are added onto bills at the end of banquets, weddings and large events — being withheld from servers, and all hotel and restaurant staff working at least eight-hour shifts were having 30-minute meal breaks deducted from their paychecks even though they weren’t receiving them.”
“What we alleged in this case was a portion of [the service charge] was going to managers, the sales department, and others who aren’t permitted under law to dip into this money intended for waitstaff,” he said.
“…state law ordering food establishments found to be withholding wages and tips to pay employees up to three times as much as they’re owed…”
The Orchards Hotel has agreed to a $240,000 proposed settlement in a class action lawsuit involving approximately 150 current and former hourly employees.
With state law ordering food establishments found to be withholding wages and tips to pay employees up to three times as much as they’re owed, the employees at The Orchards will receive between two and three times what they were owed in wages and tips, Holtzman said.
“The settlement is not only the recovery each employee is owed, but a multiple of what is owed,” he said.