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ARTICLE · 21 APRIL 2015

Employees With "Meaningful Managerial Authority" Cannot Participate In A Tip Pool

Fox Rothschild LLP
Fox Rothschild LLP
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The New York State Appellate Division, Third Department, recently reaffirmed the proposition that under New York law employees with meaningful managerial authority cannot participate in a tip pool.

United StatesEmployment and HR

The New York State Appellate Division, Third Department, recently reaffirmed the proposition that under New York law employees with meaningful managerial authority cannot participate in a tip pool.  See Marzovilla v. New York State Industrial Board of Appeals, 2015 WL 1724727 (3rd Dept., April 16, 2015).   In this action, several service members complained that a New York Italian restaurant, iTrulli, violated New York Labor Law Section  196-d by distributing shares of the tip pool to the "head waiter" and the "wine steward," who the service members alleged were managers.  New York Labor Law Section 196-d provides that "[n]o employer or his [or her] agent ... shall demand or accept, directly or indirectly, any part of the gratuities, received by an employee, or retain any part of a gratuity or of any charge purported to be a gratuity for an employee ... Nothing in this subdivision shall be construed as affecting ... the sharing of tips by a waiter with a busboy or

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