A Rochester law firm has filed suit against numerous local restaurant and banquet facilities on behalf of local workers who claim they were not properly paid tips. At the core of these disputes is the charge that the businesses added “service charges” to their customers’ bills but did not pass along all of the fees collected to their employees. Under state law, such charges must be clearly be labeled as not being a gratuity and that it will be retained by the business. If the court determines that such charges could be interpreted by the customer as a gratuity then the business will be found in violation of the state’s Labor Law. It does not matter if employees are paid well in excess of the minimum wage. Consult your legal counsel before instituting such a policy to make sure your written notice complies with the law and protects you from being a victim.