Greg Roach's Berkshires Blog
Tuesday, October 21, 2008
  $14.7 Million Mistake
Does anybody remember the great tip scam from Canyon Ranch in Lenox?

It seems that it only recently settled, and the management's deception of the customers has cost it a pretty penny:
Canyon Ranch yesterday formally agreed to a $14.7 million settlement of a lawsuit brought in U.S. District Court in Springfield by several former employees who charged that the Lenox resort's management wrongly deprived them of tips from their spa-related services.
Over the past decade there has been a huge movement by larger corporate hospitality groups to pad their bottom lines at the expense of their service employees. Whether it was blatantly misleading customers into thinking that the "service charge" on their bill meant that the tip was included, or keeping wages low by forcing hourly employees to "tip out" non-service employees such a supervisors, it has been just another brilliant move by the MBA-culture to redistribute wealth *upwards*.

Thank you Massachussetts for having a solid tip-wage law on the books. Hopefully these huge settlements will end the practice once and for all.

And while their at it, why don't places like Canyon Ranch just charge what they need to for services, rather than tacking fees on the bill? Frankly it's insulting.
 
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