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Matter of Hartnett v. Wade-Mark Eleven, Inc.

Appellate Division of the Supreme Court of New York, Second Department
Dec 18, 1989
156 A.D.2d 559 (N.Y. App. Div. 1989)

Summary

affirming the decision of the Industrial Board of Appeals that revoked the Commissioner of Labor's determination that a policy requiring waitresses to turn over 2% of their gross sales receipts for each shift and placed them in a tip pool to be distributed to other employees violated § 196-d where, among other things, there was no evidence the employer retained any of the money in the tip pool for itself

Summary of this case from Elliott v. Leatherstocking Corp.

Opinion

December 18, 1989

Appeal from the Industrial Board of Appeals of the State of New York.


Adjudged that the determination is confirmed and the proceeding is dismissed on the merits, with costs.

On March 28, 1986, the Commissioner issued an order to the respondent, Wade-Mark Eleven, Inc. (hereinafter Wade-Mark), directing it to pay a former employee $1,446.38 in wrongly appropriated tips, interest and a civil penalty. The basis of the order was the Commissioner's conclusion that Wade-Mark violated Labor Law § 196-d by operating a mandatory tip-sharing policy. Specifically the Commissioner found that Wade-Mark required its waitresses to turn over to management 2% of their gross sales receipts for each shift, which would be put into a "tip-pool" and distributed to other employees. Wade-Mark subsequently petitioned the Industrial Board of Appeals of the State of New York to review the Commissioner's order. After a hearing, the Board found that the tip-pooling arrangement was voluntary.

Judicial review of a determination rendered by an administrative body after a hearing is limited to whether that determination is supported by substantial evidence upon the entire record (CPLR 7803). In other words, this court must determine whether there exists a rational basis to support the findings upon which the agency's determination is predicated (Matter of American Tel. Tel. Co. v State Tax Commn., 61 N.Y.2d 393, 400; see also, Matter of Purdy v Kreisberg, 47 N.Y.2d 354, 358; Matter of County of Nassau v State of New York Pub. Employment Relations Bd., 103 A.D.2d 274).

In this case, there was testimony at the hearing by the vice-president and director of operations for Wade-Mark that the tip-sharing arrangement was completely voluntary and operated by the employees. There was also testimony by an investigator with the enforcement division of the New York State Department of Labor that the management of Wade-Mark did not retain any of the money in the tip pool for itself. Thus, substantial evidence exists to support the determination at issue. Mangano, J.P., Lawrence, Kooper and Rosenblatt, JJ., concur.


Summaries of

Matter of Hartnett v. Wade-Mark Eleven, Inc.

Appellate Division of the Supreme Court of New York, Second Department
Dec 18, 1989
156 A.D.2d 559 (N.Y. App. Div. 1989)

affirming the decision of the Industrial Board of Appeals that revoked the Commissioner of Labor's determination that a policy requiring waitresses to turn over 2% of their gross sales receipts for each shift and placed them in a tip pool to be distributed to other employees violated § 196-d where, among other things, there was no evidence the employer retained any of the money in the tip pool for itself

Summary of this case from Elliott v. Leatherstocking Corp.
Case details for

Matter of Hartnett v. Wade-Mark Eleven, Inc.

Case Details

Full title:In the Matter of THOMAS F. HARTNETT, as Commissioner of Labor of the State…

Court:Appellate Division of the Supreme Court of New York, Second Department

Date published: Dec 18, 1989

Citations

156 A.D.2d 559 (N.Y. App. Div. 1989)
549 N.Y.S.2d 69

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that the activity, or the lack thereof, was arbitrary, discriminatory, or in bad faith (see, Matter of Civil…

Elliott v. Leatherstocking Corp.

Section 196-d similarly does not speak to the manner in which an employer must distribute or allocate…