Contracts

Thursday, July 30, 2015

Luxury NYC Eatery Facing Labor Law Violations Over Gratuity Faux Pas

I was charged a 20% ‘service fee’ for a private dining event in New York City. Is this type of fee permissible under New York law? 

Beginning in July, 2013, the New York Attorney General’s Office began to examine the operating structure of the luxury restaurant Per Se, located on Columbus Avenue, New York, New York. According to the factual allegations, the restaurant was attaching a significant “service fee” to the final bill for private dining services amounting to 20% of the entire check. On the service agreement, the service fee was not explicitly described, and most patrons believed it to be a fee included to ensure proper gratuity was paid to the wait staff scheduled to work the event. In reality, however, the 20% fee – which was presumably sizable considering the $310.00-per-plate prix fixe menu – was used for daily operational costs of the restaurant, and was in no way paid to the wait staff for any private event scheduled by the restaurant.


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Wednesday, January 14, 2015

U.S. Supreme Court Upholds Arbitration Clause in Restaurant Case

What is an Arbitration Clause? It’s the Fine Print You Need to Understand.

A restaurant owner may sign any number of contracts in order to keep the doors open, a roof overhead and obtain supplies that are the lifeblood of the business. If the contract you are signing contains a forced or mandatory arbitration clause, and you fail to read the contract closely and fully understand its meaning, you could lose out on a number of legal rights without knowing it. One of those rights is the ability to go to court to protect your interests in the case that the contract is breached or the other party breaks the law and causes you harm.



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