California: no private right to sue under state tip law

California: no private right to sue under state tip law

The Supreme Court of California has ruled in Lu v. Hawaiian Gardens Casino, Inc., No. S171442 (Aug. 9, 2010) that the California law prohibiting employers from taking or sharing in tips left for employees by customers does not give private litigants a right to sue their employers directly for an alleged misappropriation of tips. The decision settles a split among the state appellate courts.

Decision available for download here>>