View all newsletters
Receive our newsletter – data, insights and analysis delivered to you
October 4, 2015

Employees sue Hyatt Hotels over unpaid gratuities and overtime wages

Current and former employees of Hyatt Hotels have sued the company for alleged unpaid gratuities and overtime wages.

By Samseer M

Hyatt Hotels

Current and former employees of Hyatt Hotels have sued the company for alleged unpaid gratuities and overtime wages.

Law firms such as Sheller and Donovan Axler filed a class and collective action against Hyatt Hotels in Pennsylvania.

The lawsuit stated that Hyatt’s property in Pennsylvania systematically failed to pay overtime wages and gratuities to their banquet servers.

Nancy Livi from Philadelphia worked as a banquet server at Hyatt at the Bellevue for 30 years, serving food and drinks at banquet events.

As a response to the plaintiff’s requests for clarifications regarding the hotel’s pay practices, the company withheld such information.

"Our concern is for Ms Livi and everyone who works as a banquet server to be protected from unlawful hotel practices that cause them significant financial harm."

According to the lawsuit, the hotel intentionally retained a portion of a mandatory gratuity fee or service charge imposed on banquet event customer contracts.

The gratuity fee, under Pennsylvania and Philadelphia laws, needs to be paid to employees.

Plaintiff and banquet staff punitive class representative Marc Goldich said: "Our concern is for Ms Livi and everyone who works as a banquet server to be protected from unlawful hotel practices that cause them significant financial harm."

The lawsuit also added the hotel violated US Department of Labor (DOL), US Internal Revenue (IRS), the Pennsylvania Minimum Wage Act and the Philadelphia Administrative Code regulations.

The company made these violations by allegedly failing to count the gratuities as part of the hourly wage for purposes of calculating overtime, resulting in less than the required time-and-a-half pay for overtime, the lawsuit stated.

Hyatt recently announced it ranked number 38 on the "100 Best Workplaces for Women" list by Great Place to Work.


Image: Hyatt hotel in Pennsylvania allegedly failed to pay overtime wages and gratuities to their banquet servers. Photo: courtesy of PRNewsFoto / Sheller, PC.

Related Companies

NEWSLETTER Sign up Tick the boxes of the newsletters you would like to receive. The top stories of the day delivered to you every weekday.
I consent to GlobalData UK Limited collecting my details provided via this form in accordance with the Privacy Policy
SUBSCRIBED

THANK YOU