Wage Ruling Clears Up Tip Questions For Calif. Employers
Law360 (November 20, 2019, 3:43 PM EST) -- On Oct. 31, in Lauren O’Grady v. Merchant Exchange Productions Inc., the California Court of Appeal's First Appellate District held that a service charge could be a gratuity under Labor Code Section 351, such that it would be required to be paid to nonmanagerial employees as a gratuity.
In light of O’Grady, employers should review their mandatory service charge policies and practices both to:
Ensure clear communication to employees and customers; and
Avoid conflating service charges with tips.
Distinction Between Service Charges and Tips
The California State Board of Equalization distinguishes between a service charge and a gratuity or tip in Publication...
Stay ahead of the curve
In the legal profession, information is the key to success. You have to know what’s happening with clients, competitors, practice areas, and industries. Law360 provides the intelligence you need to remain an expert and beat the competition.
Access to case data within articles (numbers, filings, courts, nature of suit, and more.)
Access to attached documents such as briefs, petitions, complaints, decisions, motions, etc.
Create custom alerts for specific article and case topics and so much more!