New York Court of Appeals
Arnel Samiento, Appellants v. World Yacht Inc., Respondents
February 14, 200810 N.Y.3d 70
Summary
The New York Court of Appeals held that mandatory service charges presented to patrons as gratuities fall within Labor Law §196-d, reinstating the plaintiffs' first cause of action for all three cruise types. It affirmed the appellate division's dismissal of the General Business Law §349 claim and the unjust enrichment claim, and affirmed the modified order. The decision emphasizes a liberal construction of the gratuity prohibition in favor of employees.