Manhattan’s Per Se Said To Owe $500,000 In Unpaid Tips
Last Thursday, New York Attorney General Eric Schneiderman announced a settlement with his office and upscale Manhattan restaurant Per Se over allegations of unpaid wages. Specifically, the restaurant was found to have failed to pay wait staff the 20% automatic tip allocated to parties in private dinners and banquets from January 2011 to September 2012. Rather than distribute the 20% it charged customers to servers, as required by the State Department of Labor, Per Se was found to have used the funds during that time period to pay for general restaurant operations. The Wall Street Journal reports that as part of the settlement, Per Se has agreed to pay between 60 and 70 affected workers $500,000 in back wages. Terri Gerstein, Labor Bureau Chief for Schneiderman, said, “Workers need to know that they have a right to receive their tips and I think restaurants should look at the regulations, which are extremely clear.” The Journal notes that wait staff at the restaurant earn $16.60 to $28 per hour, and with tips and overtime take home an average of $116,000 annually. The state’s wage board has previously said it would discuss the issue of whether tips should be scrapped if the hourly minimum wage is increased.
What This Means For Small Businesses
Small businesses across New York often face challenges as they seek to grow while also fairly compensating employees and ensuring compliance with increasingly complex labor laws. Meanwhile, the state Attorney General’s office has grown increasingly aggressive in seeking to enforce regulations and fine small business owners. The Per Se settlement is the latest example of the state’s increasingly regulatory attitude towards business owners.
Additional Reading
Gawker and CNN Money were among the other news outlets covering the settlement. NFIB previously covered the fast food worker minimum wage debate in New York.
Note: this article is intended to keep small business owners up on the latest news. It does not necessarily represent the policy stances of NFIB.
