Endicott Limo Company Fined In Tip Investigation
A Broome County limousine service has been ordered to make restitution to drivers who were said to have been cheated outed of tips paid by customers.
According to the New York State attorney general’s office, Coachmaster Transportation of Endicott must pay $20,000 to workers, along with a $20,000 fine.
Attorney General Eric Schneiderman says the payments are to be made to resolve an investigation into the company’s gratuity procedures.
Schneiderman says the investigation revealed Coachmaster for several years retained about one-third of the tip amount that was included on customer invoices. He says customers weren’t informed part of the gratuity would be kept by the company.
State law and regulations prohibit employers from retaining any portion of tips meant for workers.
Schneiderman says under the settlement, Coachmaster agreed to pay $20,000 restitiution to affected employees. The company also was assessed a $20,000 civil penalty.