Hadsell Stormer Richardson & Renick Win Appeal. Class Action Service Fee Case To Go Forward

On September 8, 2010, the California Court of Appeals ruled that the employees of the Renaissance Montura Hotel, the Marriott LAX, the Four Points Sheraton, Hilton Los Angeles Airport, and the Radisson Hotel LAX hotels are allowed to recover service fees collected by the hotels since 2008. The panel of three judges from the Second Appellate District reversed the dismissals of class action lawsuits brought by employees of five hotels which had failed to pay to their employees mandatory service charges in violation of a city ordinance. The Court of Appeal held that the City of Los Angeles’ Hotel Service Charge Reform Ordinance was not preempted by the California Labor Code provisions regulating gratuities and was not unconstitutional. As a result of the ruling, the employees of hotels can proceed in their lawsuit to collect their share of service fees charged.