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A Tarrytown, New York, DoubleTree hotel franchise owner will pay up to $1.4 million to end banquet servers’ claims they were not properly paid tips or overtime wages.
The class action lawsuit, originally filed in December 2014, alleged that though the plaintiffs regularly worked more than 40 hours per week, franchise holder 455 Hospitality LLC, never paid them overtime.
The workers argued 455 Hospitality told them the DoubleTree’s policy was not to pay overtime; however, that is a violation of New York state law and the federal Fair Labor Standards Act (FLSA).
In addition to the allegedly unpaid overtime wages, the workers, who claimed they received their tips from a pooled fund that collected a 12 percent gratuity fee hotel guests were charged, argued they did not receive the full amount of tips they were owed and were not notified of the tipping procedure — also a violation of state law.
The plaintiffs claimed the DoubleTree hotel franchise owner did not tell them servers would not be paid an 11 percent service charge.
If approved, the $1.4 million settlement will cover claimant awards, plaintiff service payments, attorneys’ fees, and other costs.
So far, 111 individuals, including the named plaintiffs, have filed a consent to join the claims in the collective action.
The settlement agreement also covers all individuals employed at the DoubleTree by Hilton Hotel located at 455 S. Broadway, Tarrytown, New York 10591, at any time from Dec. 4, 2008, to March 18, 2016, and held a non-exempt position within the food and beverage or housekeeping departments, including in any of the following positions: banquet server, waiter/waitress, host/hostess, dishwasher, sous chef, cook, room service attendant, dining room attendant, banquet houseman, housekeeper, room attendant, housekeeping houseman.
DoubleTree is a Hilton brand with nearly 5,000 locations worldwide.
What do you think of the DoubleTree hotel franchise overtime wages settlement? Let us know in the comment section below.
The plaintiffs are represented by John Joseph Malley of Smith Buss & Jacobs LLP and Vincent Volino of Vincent Volino PLLC.
The New York DoubleTree Hotel Franchise Overtime Wages Class Action Lawsuit is Carlos O., et al. v. 455 Hospitality LLC, et al., Case No. 7:14-cv-09614, in the U.S. District Court for the Southern District of New York.
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