A class action lawsuit has been filed against eight LAX area hotels for allegedly violating a recently enacted city law requiring hotels to pay to their employees all tips and services fees collected on their behalf. The lawsuit was filed on behalf of employees at Four Points, Marriott, Renaissance, Embassy Suites, Courtyard, Westin, Hilton, and Radisson and claims hotels have continued to pocket the fees that they are collecting on behalf of their employees.
The Hotel Service Charge Reform Ordinance was passed by the Los Angeles City Council on November 22, 2006 and signed by Mayor Antonio Villaraigosa on November 27, 2006; it became effective on January 1, 2007.
The class action claims that the Hilton, Four Points, Radisson and Westin charge a fee of up to 20% for all food and beverages served at banquets and room service, but the hotels refuse to pay the collected charges to its servers.
