When it comes to MA's Tips Act, consistency is key

Consistency is key when dealing with the Massachusetts Tips Act (MTA), as one country club in Sharon learned when service staff filed a class action alleging they were owed unpaid wages under the Act. They won a jury verdict in their favor but appealed, arguing they weren't awarded sufficient damages. The Massachusetts Appeals Court, Massachusetts' intermediate court, affirmed the lower court's decision. Although the ruling didn't impose additional damages, it does show employers that if they want to avoid going to a jury, they need to get it right 100 percent of the time, not just most of the time. Read on to learn more.

Contracts

Spring Valley Country Club hosts wedding receptions, golf outings, and other private events at its facility. The club is unique in that it maintains a tip-free policy and pays its service staff a fixed rate varying between $12 to $15 an hour during the relevant time frame. The tip-free policy is reportedly well known by the club's members and was included in the "prices" section of its pre-event contracts, which stated that "Spring Valley is a non-tipping facility; no tip is expected or accepted by the service staff."