STARWOOD SETTLES WAGE AND HOUR LAWSUIT FOR NEARLY $1M

Starwood Hotels & Resorts Worldwide, Inc., one of the largest hotel operators in the world, agreed to settle a class action suit brought by waiters working in one of its Westin resorts.  The complaint alleged that a 20% service charge that was added to customers’ bills at the hotel was not given to food and beverage workers.  Instead, the Westin would either keep a portion of the service charge for itself or use it to pay managers and other non-tipped workers.  The Westin did not inform customers that the service charge did not completely go to servers and this affected the tips the servers received.  Starwood agreed to pay $940,000 as a settlement and $25,000 to each class representative as incentive payments.

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