January 15, 2010
Five Oahu hotels are now being sued over accusations they failed to pass on food and beverage service charges to employees who worked at events.
The suits potentially involve hundreds of hotel workers and potentially thousands of customers who paid for events like wedding receptions and banquets.
Two of the lawsuits, naming the Kahala Hotel & Resort and the Hilton Hawaiian Village Beach Resort & Spa, could go to trial later this year. The suit against the Kahala was certified as a class action last month and attorneys are seeking class certification in the Hilton suit.
Two other lawsuits name HTH Corporation, operator of the Pacific Beach Hotel in Waikiki and the Pagoda Hotel & Restaurant in Honolulu, and the Turtle Bay Resort on the North Shore.
Attorneys for the principal plaintiffs — two hotel customers and two former hotel banquet workers — say other lawsuits could follow and could involve Neighbor Island hotels.
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At issue is the state law, HRS 481-B, that requires hotels and restaurants to distribute service charges to workers “or clearly disclose to the purchaser of the services that the service charge is being used to pay for costs or expenses other than wages and tips of employees.”
The Kahala suit, filed in December 2008 by Honolulu resident Jason Kawakami, said that his wedding reception in July 2007 included a 19 percent service charge on the food and beverages, which totaled $4,810.
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