Does your employer add a "service charge" to customers' bills? If you work in New York, a charge for service is presumed to be a tip. Your employer has to pay 100% of any service charge to the employees who are providing service. Although an employer may use other terms, such as "administrative fee" or "labor charge," those charges could also be considered tips under certain circumstances.

New York is not the only state that prohibits an employer from keeping a "service charge." Minnesota, Hawaii, and Massachusetts have similar laws.

We have substantial experience representing employees who have been denied payment of a service charge. Read the description of our experience in class action cases against Restaurant Associates, Levy Restaurants and Amerivents at the US Open, and our most recent case against Wolfgang Puck Catering and Events, LLC.