Hawaiian Law Tips in Servers' Favor

What may be the first lawsuit targeting disclosure of hotel or restaurant food and beverage service charges has been filed in Hawaii. Jason Kawakami, who filed the suit against The Kahala Hotel and Resort, is seeking damages for anyone who paid a food and beverage service charge at the hotel since March 2006. The hotel charged a 19 percent ($4,811) service charge on the food and beverage tab for Kawakami's wedding, according to a recent Honolulu Advertiser story.

Passed in 2000, Hawaii Revised Statutes Section 481B-14 requires hotels and restaurants to disclose any food and beverage service charge not entirely paid to employees in the form of salary or tips. The law, which may not have been widely known before this, applies to catered events and restaurant bills where a gratuity is automatically added.

The attorney for the plaintiff says other Hawaiian hotels and restaurants may be retaining part of food and beverage service charges that range from 15 to 23 percent. Kawakami could receive $15,000, which is three times the damages, plus attorney's fees and costs.   


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