Harvard Club Reaches $4M Settlement With Waitstaff

This article is more than 9 years old.

The exclusive Harvard Club of Boston has reached a $4 million settlement with its waitstaff in a tip dispute.

The staff sued in November claiming the 17 percent gratuity the club tacks on every bill was not given to employees.

Even though the club has a no-tipping policy and staffers make more than most hospitality workers, state law says service charges a customer would "reasonably expect" to be given to a server in lieu of a tip must go to the employee.

The Boston Globe reports that the settlement, which needs a judge's approval, was reported in a letter to club members and confirmed by the plaintiffs' lawyer.

The club with about 5,000 members is not affiliated with Harvard University, but many of its members are alumni of Harvard and other elite universities.

This program aired on September 21, 2012. The audio for this program is not available.