Hilton Worldwide, Inc.
ABBEY SPANIER INVESTIGATES HILTON WORLDWIDE, INC. FOR UNFAIR EMPLOYMENT PRACTICES RELATED TO ITS BANQUET SERVERS AND BARTENDERS
Abbey Spanier is currently investigating Hilton for unfair employment practices related to its Banquet Servers and Bartenders. Hilton allegedly requires its Banquet Servers and Bartenders to share a percentage of their tips with non-tipped employees in violation of federal and state law.
Under certain circumstances, employers are permitted to pay employees who receive tips a minimum wage rate that is lower than the federal minimum wage of $7.25 (often referred to as a Tip Credit). This means that an employee's tips are credited toward the employer's obligation to pay the minimum wage to that employee. In order to comply with the law, the employer must: (1) inform each employee about the tip credit (including the amount to be credited) before the credit is applied; (2) be able to show that the employee receives at least the minimum wage when wages and the tip credit are combined; and (3) allow the tipped employees to retain all tips, except to the extent the employee participates in a valid tip pooling arrangement among employees who regularly receive tips, such as waiters, waitresses, bellhops, counter personnel (who serve customers), busboys/girls, and service bartenders. Tipped Employees may not be required to share their tips with employees who have not customarily and regularly participated in tip pooling arrangements, such as dishwashers, cooks, chefs and janitors.
If you are a current or former employee of Hilton and would like to discuss our investigation, please tell us your story.