Carolyn D. Richmond was quoted in Law360's article,
"For Fine Dining Sector, Tip Pools Can Be Legal." Full
text can be found in the July 1, 2014, issue, but a synopsis is
below.
With the recent spike of lawsuits against restaurants concerning
tipping law violations, employees with managerial duties are most
at risk of facing litigation or Department of Labor audits in the
coming future.
Carolyn Richmond, co-chair of Fox Rothschild's hospitality
practice based in New York City, comments that while restaurants
tend to hold many positions in the tip, "they're taking
the gamble now that, under the law, they will pass the
test."
She further explains that some restaurants are reducing
employees' nontipped duties, such as inventories and handling
vendors, to one day a week and not including that employee in the
tip pool for the day.
To close, Richmond states that tipping laws are "a catch-22
for a lot of restaurants." Looking forward, many hope that New
York's next wage order clarification will facilitate this
problem.
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