A group of catering workers sued their employer, Restaurant Associates Events Corporation (RAEC), for charging customers a "service fee" and then withholding that money.
When the Westchester County Supreme Court was asked to dismiss the case, the company contended that it did nothing to make its customers believe that the charge was a "gratuity" and that it was entitled to keep the disputed proceeds.
Since employees weren't permitted to accept money or gifts, and because customers may have been left with the impression that the service charge was a gratuity, the Westchester Supreme Court refused to tip the case in RAEC's favor and directed that the case proceed to trial.
Did RAEC get stiffed there?
To view a copy of the Supreme Court's decision, please use this link: Martin v. Restaurant Assoc. Events Corp.