NY Court Grants Employers Broad Discretion In Tip Pooling

Law360, New York (September 24, 2013, 12:34 PM ET) -- In a decision that is helpful to hospitality industry employers, the New York State Court of Appeals has given restaurants and other food outlets considerable flexibility in establishing mandatory tip pooling for service staff.

In Barenboim v. Starbucks Corp., __ N.E.2d ___, (2013), the court sided with the employer, ruling that the inclusion of all shift supervisors in the employer-mandated tip-allocation arrangement, or "tip pool," was lawful under New York's wage payment statute. See N.Y. Labor Law §196-d.

In reaching this decision, the court held that...
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