San Francisco Superior Court Judge Schulman tentatively found that Marriot owed banquet servers close to $9M.

The Case: John Ordono et al. v Marriott International Inc.

The Court: San Francisco County Superior Court

The Case No.: CGC-16-550454

The Plaintiff: John Ordono et al. v Marriott International Inc.

The plaintiffs in the case are two former banquet servers for the hotel and conference space, Marriott. During their busy season, the largest ballroom seats up to 5,000 people. The class action focuses on the time between January 2012 and April 2017 when Marriott added a mandatory service charge to customers’ food/beverage bills. From January 2012, the service charge was 23%. Marriott increased the charge to 24% from November 2015 through April 2017. During this five-year period, Marriott distributed 70-72% of the mandatory service charge to their banquet staff. They retained the remainder. Plaintiffs in the case allege this standard practice equates to the employer skimming between 30 and 28% of the total. The plaintiffs filed as a class action, and considering normal turnover, the class of servers is likely to total about 150 people.

The Defendant: John Ordono et al. v Marriott International Inc.

The defendant in the case, Marriott International Inc., revised the billing format to break the mandatory charge into a “staff charge” and a “house charge” in April 2017. The Ordono case only focuses on the period prior to this change, but those arguing on behalf of the plaintiffs find this change telling.

The Case: John Ordono et al. v Marriott International Inc.

In the case, John Ordono et al. v Marriott International Inc., the judge tentatively found that the plaintiffs were entitled to $8.97 million because a reasonable customer may assume the mandatory service charge is a gratuity that goes to their server. California Labor Code 351 states that tips or gratuities belong to the employee, and employers may not take them or deduct any portion of them from the worker’s pay.

If you have questions about how to file a California wage and hour lawsuit, please get in touch with Blumenthal Nordrehaug Bhowmik DeBlouw LLP. Experienced wage and hour attorneys are ready to assist you in various law firm offices in San Diego, San Francisco, Sacramento, Los Angeles, Riverside, and Chicago.