Calif. High Court Nixes Tip-Pooling Suit

Law360, New York (August 9, 2010, 7:23 PM EDT) -- The California Supreme Court ruled Monday that there is no private right to sue under Section 351 of the state's Labor Code, which regulates the handling of gratuities in the workplace.

Ruling in a case brought by card dealer Louie Hung Kwei Lu over Hawaiian Gardens Casino Inc.'s tip pooling policy, the state's highest court affirmed an appeals court's decision that the statute does not give employees the right to sue their employers.

Section 351 forbids employers from taking any tips patrons leave for their employees,...
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