Adding Fairness to the Tip

Besides being major names in the culinary world, what do Lidia Bastianich, Mario Batali, Tom Colicchio, Bobby Flay, Danny Meyer, Keith McNally, Drew Nieporent, Jean-Georges Vongerichten and Michael White have in common? In recent years, their restaurants have been caught up in a wave of lawsuits — almost all class action — alleging violations of labor laws regarding wages and overtime. And new suits are being filed almost daily. What’s behind this onslaught?

Lawyers for the plaintiffs argue that many of the city’s restaurants are routinely cheating their workers by confiscating waiters’ and busboys’ tips to share with managers and other ineligible employees, among other charges. Restaurateurs, in turn, point to a confusing hodgepodge of outdated wage and hour laws and opinion letters from the State Department of Labor that have made it hard to know whether they’re in compliance.

Whom should diners believe? There’s likely some truth to both versions. As in all industries, it’s probable that some restaurateurs are unscrupulous. They deserve to be held accountable. But it defies common sense to think that so many of the city’s most respected restaurateurs have intentionally cheated their waiters — and continue to do so despite the threat of costly lawsuits that could drive them out of business.

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