Hovagimian v. Concert Blue Hill, LLC
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The Supreme Judicial Court held that the term "service charge" is a defined term in the Tips Act, Mass. Gen. Laws ch. 149, 152A, that the disputed charge at issue in this case was properly characterized as a "service charge," and that the "safe harbor" provision of the Act did not apply in this case.
Plaintiffs, service employees for Concert Blue Hill, LLC and its managerial staff (collectively, Blue Hill), alleged that Blue Hill violated the Act by failing to remit to them charges identified as "service" charges on invoices sent to patrons but previously described in initial documents as "administrative" or "overhead" charges. The superior court granted Blue Hill's motion for judgment on the pleadings and dismissed the action. The Appeals Court affirmed. The Supreme Judicial Court reversed, holding that the plain meaning of the Act required Blue Hill to remit the disputed charge to Plaintiffs.
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