Posted on May 10, 2011 by Greg Blankinship

Complaint Filed Against Atlantis Resorts For Unfair And Deceptive Imposition Of A Mandatory Housekeeping Gratuity

Meiselman, Denlea, Packman, Carton & Eberz P.C., based in White Plains, New York, recently filed a Complaint in Florida federal court against Kerzner International Resorts, Inc., the general sales and marketing agent for Atlantis resorts. The Complaint alleges that Atlantis unfairly and deceptively charges a “mandatory housekeeping gratuity” the vast majority of which is not actually paid to the housekeepers.

In the face of shrinking revenues and eroding profits in the current economic climate, hotels and resorts have turned to the practice of imposing additional fees and surcharges on consumers designed to appear as innocent expenses. One such charge is Atlantis’ imposition of a “mandatory housekeeping gratuity.”

The Complaint alleges that the imposition of the Mandatory Housekeeping Gratuity is an unfair and deceptive practice because it is not entirely a “housekeeping gratuity.” By using that term, Atlantis represents and implies that the entire fee is being collected on behalf of, and subsequently distributed to, the housekeeping staff that services travelers’ rooms.   However, Atlantis does not disclose the material fact that the housekeeping staff receives only a small, if any, percentage of that “gratuity.” By labeling an additional charge something that it is not, Atlantis is deceiving consumers into paying more for their hotel room than they bargained.

If you or someone you know has stayed at the Atlantis resort or its related hotels, please contact us to discuss your legal options.

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Posted on January 22, 2010 by Jerome Noll

Is Your Employer Violating The Law By Not Paying Gratuities Earned By You?

A few months ago we published a blog post about employees who are paid by the hour -- particularly low wage workers -- and who are often cheated by their employers.  We pointed out that hourly workers are routinely denied proper overtime pay and are often paid less than minimum wage according to a newly released study based on a survey of workers in New York, Los Angeles and Chicago.

But what about workers who are not being paid their tips, even though their employers are charging customers a mandatory gratuity for various services?  Unfortunately, many employees do not realize that they are entitled to receive all, or a significant portion, of gratuities charged by employers to their customers.

Indeed, there are millions of workers in the USA that rely on tips for most of their income, and there are well over two million businesses that rely on tipped employees.  According to recent statistics from the U.S. Department of Labor, food and beverage service-related workers held 6.5 million jobs in 2000 alone.  The U.S. Department of Labor estimates in a 2001 study that tips and gratuities may account for well over $5 billion per year being left on plates and tip trays and financed on credit cards.

But let's face facts.  Relying on customers' tips for your income is tough.  The average customer doesn't realize how difficult and hard the average waiter, waitress, hair dresser, concierge, cab driver, maitre de or bartender works for their money.  Dealing with and satisfying the general public is one of the most demanding jobs around.  Many, if not most, tipped employees have a tough time making ends meet.

So if your employer is withholding gratuities that you’ve earned, you may have a case under The Fair Labor Standards Act ("FLSA").  The Act mandates that gratuities earned by an employee but collected by an employer must be turned over to the hard working employee whom earned it.  If your employer is not doing so, you may have a basis to file a class action suit to recoup the tips earned by you and all other workers at your work site.  Employers who do not manage and properly account for the gratuities earned by their employees and who do not properly pay their employees tips that they have collected on behalf of their workers may in fact be violating the law.

 If you believe that your employer is withholding gratuities that you’ve earned, please contact us to discuss your legal options.

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