Bartenders Entitled To Recover Gratuities Used By Bar To Pay For Customer Walkouts

Bartenders and servers, who were forced to pay the tabs of deadbeat customers out of their own tips, can get their money back according to a decision by the Supreme Court of Minnesota. Drink and Spin nightclubs, in Minneapolis, Minnesota required bartenders and servers to pay for cash register shortages, the bills of customers who walked out without paying (“dine and dash”) and for customers who failed to sign credit card receipts. The court held that gratuities are “wages” under Minnesota law and that the bar was liable to the bartenders for their claim of unlawful deductions from wages. Attorneys for the workers claim that damages in the case could exceed $100,000.