Hilton Reaches $12 Million Agreement to Settle Server Tip Claims

Twelve million dollars represents a fair settlement of claims San Francisco Hilton Inc. owes 1,100 servers and bussers tips disguised as “mandatory service charges,” the parties say of their mediated deal.

The proposed class action settlement should receive preliminary approval also because it’s the product of informed, “non-collusive negotiation,” and has no “obvious deficiencies,” named plaintiff Baikuntha Khanal said in his unopposed motion to the US District Court for the Northern District of California filed Jan. 30.

Khanal said the case was “fiercely litigated” by Hilton for 12 years. The hotelier had contended there were sufficient disclosures that the service ...