Mass. SJC Rules For Workers In Country Club Invoice Case

Blue Hill Country Club violated the Tips Act by listing charges for "service" on its invoices but failing to deliver related gratuities to workers, the state's highest court ruled Monday.

The Supreme Judicial Court vacated a lower court order in Blue Hill's favor and remanded the matter to the Superior Court for further proceedings. Blue Hill had maintained that the term used on a patron invoice was poor drafting and that it was permitted to retain the disputed charges under the act's "safe harbor" provision, but the high court said the safe harbor provision "does not apply in these circumstances."

"As we have previously noted, '[t]he Legislature intended to ensure that service employees receive all the proceeds from service charges, and any interpretation of the definition of 'service charge' must reflect that intent," Justice Serge Georges wrote in his ruling. "A plain reading of the language of the final invoice, labeling the disputed fee as a "service" charge, accomplishes this purpose."

Paul Holtzman of Krokidas & Bluestein represented workers in the case and said the ruling was an "important confirmation that Massachusetts law provides clear protection against workers having their tips taken from them."

"It's gratifying that this victory means these workers will now receive not only their back wages and tips, but also the mandatory treble damages designed to deter future violations," he said in a statement. "It is also an important reminder of the broad scope of the Tips Act protecting workers at hotels, spas, hair and nail salons, restaurants, catering halls and country clubs – anyone in an occupation in which employees customarily receive tips."

Judge Scott Kafker dissented, writing that he believed that Tips Act was not violated.