5th Circuit: Employer May Only Withhold Credit Card Fees From Charged Tips

Mealey's (June 15, 2016, 11:52 AM EDT) -- NEW ORLEANS — An employer that retained a percentage of its servers’ tips paid by credit card was only legally permitted to withhold the credit card issuer fees, a Fifth Circuit U.S. Court of Appeals panel ruled June 14, partially affirming a trial court’s decision in a collective action filed by a group of servers; however, the appellate panel held that the District Court erred in denying the servers attorney fees (Giullian Steele, et al. v. Leasing Enterprises, Limited, No. 15-20139, 5th Cir.; 2016 U.S. App. LEXIS 10775)....

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